I'm in the county town, and you say I'm a big shot?

Chapter 604 The Urban Investment Company Also Wants to Borrow Money
As time went on, the "cash crunch" in the market became increasingly severe, with interbank lending rates soaring abnormally. The overnight lending rate reached an annualized rate of up to 30%, and the 7-day pledged repo rate hit a new high of 15.6217% since 2007!
Black swan events are occurring frequently in the financial markets.

Rumors circulate that Industrial Bank and China Everbright Bank have defaulted on a transaction involving hundreds of billions of yuan!
Despite both Everbright Bank and Industrial Bank issuing denials, the Shanghai Interbank Offered Rate (Shibor) surged across the board that day!

Interbank trading closed twice by half an hour!

Large commercial banks, which used to be the lenders, also started to borrow money, resulting in some institutions still being unable to close their positions by the scheduled closing time in the afternoon. As a result, the interbank local currency system was forced to extend trading by half an hour.

Short-term treasury bonds failed to sell at auction!
The Agricultural Development Bank of China (ADBC) issued 10 tranches of financial bonds in the interbank market with a term of 6 months, aiming to raise 200 billion yuan. However, the actual issuance amount was only 115.1 billion yuan, making it the first interest rate bond to fail to attract any bids since 2013.
For a time, the domestic financial market was in turmoil, and people were filled with anxiety.
Under Fang Qingye's leadership, Jinghai Bank adopted a "stockpiling for famine" policy, quickly clearing out high-risk interbank business products in the early stages, and seemed to have been largely unaffected.

Having food in hand means you won't panic.

However, Fang Qingye, as the head of the bank, didn't have much leisure time. On the contrary, he was very busy. His phone had been ringing off the hook these past few days!

They all mean the same thing: borrow money!

Jinghai Bank has now basically suspended its interbank business. All lending, deposits, and repurchase agreements involving outflow of funds must be reviewed and approved by Fang Qingye.

So whether it's borrowing through formal procedures or trying to borrow money using personal connections, some people call directly from the bank manager, others go through government leaders, and some even find Fang Qingye's friends and relatives. In the end, they all end up with him.

This is crazy.

How can anyone stand it?
Fang Qingye had no choice but to get a new SIM card.

Fang Qingye originally had two phone numbers, but after buying an iPhone 4, she could only put one number on the device, so the one she didn't use often became useless.

He got a new SIM card and bought a Samsung Galaxy Note 3, rendering his old iPhone 4 obsolete.

These worlds are much cleaner.

In fact, Fang Qingye is not a "stingy miser". When he encounters someone he has a personal relationship with and the other party is financially capable and will not default, Fang Qingye is happy to lend money out. After all, such a high market interest rate can bring high profits to the bank.

Just now, Su Ming, the branch manager of Dongfangxing Nanxin Branch, came to Jinghai Bank to find Fang Qingye, wanting to borrow 8000 million yuan from Jinghai Bank for a period of one month.

"President Su, you're short of money too?" Fang Qingye asked incredulously.

"The so-called number one bank in the universe" actually came to borrow money from a small bank like ours.

"Well, actually we're not particularly short of money, but yesterday we suddenly received a notice from the city branch requiring all branches to increase their loan-to-deposit ratio by two percentage points by the end of the month compared to the standard set at the beginning of the year. Any branch manager who fails to meet the requirement will be suspended from duty for investigation. Our bank has been lending too aggressively recently, which has led to a decrease in the loan-to-deposit ratio, so I have to make up for it," Su Ming said with a sigh.

"I went around to the Construction Bank, the Agricultural Bank, and the Postal Savings Bank. I talked to their bank managers, but those guys who used to be brothers when they were drinking together have all become stingy. So I came to you for help, Manager Fang. You came from the Eastern Bank, you can't just stand by and watch me die."

"President Su, I definitely have to help you since you've come all this way!" Fang Qingye said. "Have your staff follow the proper procedures to get the loan from the Changle branch. I'll give President Song a call then."

"President Fang is indeed straightforward!" Su Ming's heart, which had been hanging in suspense, immediately settled down.

"Have some tea," Fang Qingye said with a smile.

The two chatted over tea: "Actually, I think your city branch manager, Mr. Li, is a bit paranoid. Dongfang Bank is the largest bank, with a very solid foundation, unlike us small banks who have to be careful with our spending."

"Sigh, I heard that the central bank is definitely not loosening monetary policy this time, leaving commercial banks to fend for themselves, so everyone is very cautious, afraid of defaulting."

"That's true." Fang Qingye nodded. "I've also received information that the central bank will definitely not bail out the market this time."

"Alright, you're busy now, I'm leaving, I still have a lot of things to do at the bank." Su Ming said, standing up.

"Hu Lingling, see President Su off," Fang Qingye said to Hu Lingling next door.

"No need to be polite, we're all family."

Hu Lingling still saw Su Ming off to the door.

Fang Qingye shook his head.

Including Su Ming, this is the third person to come to my door today asking to borrow money.

He sat back in his executive chair and continued reviewing the approval reports submitted by various branches, most of which were interbank transactions. Although Fang Qingye had instructed the branches to scrutinize all loan applications and strictly control the process, the number of approval reports submitted was still considerable.

Fang Qingye could imagine how many people were surrounding the branch managers, all wanting to borrow money.
He was looking at the documents intently when he heard footsteps outside the door, along with Hu Lingling's voice: "Yes, our bank manager, Mr. Fang, is here."

Then Hu Lingling led two people in.

"President Fang, County Chief Li and General Manager Duan need to speak with you," Hu Lingling said.

It turned out to be Li Jinyang, the county head in charge of finance, and Duan Bo, the general manager of the county's investment company.

"County Chief Li, General Manager Duan, what rare guests you are!" Fang Qingye stood up with a smile to greet them.

"Please have a seat, both of you. Hu Lingling, pour some tea!"

The three sat on the sofa and chatted.

After a moment, Li Jinyang spoke up: "President Fang, I know you're busy, so I won't disturb your time. Let's get straight to the point. I hope the Jinghai delegation can provide the city investment loan to build the Ginkgo Avenue."

Fang Qingye naturally knew about Ginkgo Avenue, which was named after the city tree of Nanxin—the ginkgo tree.

It is another main road connecting the old and new urban areas in the south, 10 kilometers long, 40 meters wide, with six lanes in both directions, and connected to the expressway. Including land acquisition, demolition and construction, the budget is 5.2 million yuan. The county raised funds through the urban investment company and obtained loans from various banks.

To this end, the county held a special meeting and convened eight banks of all sizes in the Nanxin area to actively provide loans.

Jinghai Bank was no exception, and requested a loan of 7500 million yuan.

Fang Qingye still supports the city's road construction.

Of course, this 5.2 million yuan loan from the local government financing vehicle company was not a one-time loan, to avoid incurring high interest rates. Loans were obtained from various banks according to the progress of each project.

According to the plan, Jinghai Bank has already completed the process of lending out 4500 million yuan in the first batch and the funds have been transferred to the designated account of the recipient.

So Fang Qingye was puzzled when she heard Li Jinyang say this: "County Chief Li, our first batch of 4500 million has already been allocated. Is there some problem?" Fang Qingye looked at Duan Bo after she finished speaking.

“No problem.” Duan Bo quickly said, “The main issue is that the 3000 million yuan loan from the Rural Commercial Bank cannot be redeemed. There’s a ‘cash crunch’ right now, so we want you to lend another 3000 million yuan, which will bring the total to 7500 million yuan to complete the task.”

oh.
Nanxin Rural Commercial Bank was restructured from the former Nanxin Rural Credit Cooperative and is also a small and medium-sized bank. This time, it is also facing a liquidity crisis.

Two days ago, their bank manager went to Fang Qingye and pleaded with her until she was hoarse. Fang Qingye agreed to lend them 4000 million yuan in the form of interbank lending to solve their cash shortage, with a term of 3 months.

They certainly wouldn't lend 3000 million to the local government financing vehicle company; they're like a clay bodhisattva crossing a river—barely able to save themselves.

However, Fang Qing didn't want to agree so readily.

“County Chief Li, didn’t you go to the Construction Bank or the Agricultural Bank? They are financially strong, so coming up with 3000 million shouldn’t be a problem, right?” Fang Qingye said.

“We went to them one by one, and they all complained bitterly. Just now on the stairs, we ran into President Su of Dongfang Bank, who said he had just borrowed 8000 million from you to tide him over.”

shit
Unfortunately, they saw it.

"President Fang, you're quite wealthy now, so please don't refuse," Liu Jinyang said with a smile.

"Alright then," Fang Qingye agreed.

I have the resources, and besides, the county investment company is still a nominal shareholder of Jinghai Bank, so I have to give them face.

"Then let's proceed with the loan application according to the original procedure and continue to use the land as collateral," Fang Qingye said with a smile.

Unexpectedly, the two exchanged a glance and then Duan Bo said, "Fang Xing, we can't use the land as collateral this time."

Ok? !

(End of this chapter)