Chapter 290 "Zumikan" And the Collapse of Hyogo Bank

The major crises of two financial institutions, "Sumi Chuan" (a specialized housing finance company) and the Bank of Hyogo, were the most symbolic cases during the Heisei financial turmoil. They were also the two major events that opened the curtain on Japan's Heisei economic depression.

From then on, Japan's history and economic era will officially enter a new stage.

The so-called "housing specialist" refers to a series of non-bank financial institutions established by the financial sector in the 1970s in order to provide residential loans to private individuals. It is directly under the jurisdiction of the Ministry of Finance, and key positions in the association are held by a large number of retired senior officials hired by the Ministry of Finance. However, due to the competition between the banks that provided financial support behind the "Housing Specialist", it was once trapped in a fierce battle for real estate financing during the bubble economy period. Among them, “residential education” as a user of its funds has also been severely affected.

As the bubble economy burst, a large number of these "residential institutions" collapsed. It was only the support of the Bank of Japan and the Ministry of Finance that prevented them from being completely destroyed.

Unfortunately, paper cannot stop the fire after all. According to feedback from the Ministry of Finance’s recent on-site inspections, more than 70% of the loan balances of seven "housing specialization" companies have become non-performing debts and are actually in a "dead debt state". Among them, the largest That company, Nippon Housing Finance Co., Ltd. (Nichisumi Financial), with Sumitomo Bank as the main investment bank, has been unable to reach a conclusion on its reconstruction plan. Later, during an investigation by the Financial Services Agency, it was found that internal employees abused their private power and embezzled a large amount of bank funds. , the loan business is based on relationships as the core judgment point, and most of them have become inaccessible bad debts.

The amount of financing lost due to dead loans alone is as high as 12.85 trillion yen. Counting all of them, Sumitomo Bank suffered a loss of about 25 trillion yen due to Nissumi Financial!

The situation of the other six companies is also not optimistic, and their biggest problem lies in their complex equity structure.

Less than 10% of the equity of these "housing colleges" comes from the Bank of Japan and the Ministry of Finance, about 20% comes from the main investment banks, and 10% comes from other investment banks, and about 60% comes from For agricultural and forestry system financial institutions!

In other words, each "residential college" is a joint venture held by multiple urban banks, but their total shares do not exceed 30%, and some are held by officials. The real investors are actually It is an agricultural and forestry system financial institution!

Japan's Agriculture and Forestry System Financial Institution is a semi-official non-bank financial institution. Its main controllers are the ministers and affairs officers of the Ministry of Agriculture, Forestry and Fisheries, and its funds come from local agricultural and forestry societies in Japan.

In other words, the biggest victims of the outbreak of the "hospital housing" problem are the capitalists in agriculture and forestry, and the migrant workers who work for them!

This is the real last straw for Kyoto’s agriculture!

There are irreparable problems in the "Residential College", and officials with complicated relationships cannot escape the blame. The matter was exposed by Kitahara Interactive Entertainment. The reputations of the Ministry of Finance and the Bank of Japan suddenly became even more tarnished, and the biggest victim was the financial institution of the agricultural and forestry system. On the verge of collapse, the Ministry of Agriculture, Forestry and Fisheries, as the controller and responsible party, has also been pushed to the forefront.

Miyazawa finished his speech with a deadpan expression. He was very embarrassed for a moment. The speech also praised the Bank of Japan and the Ministry of Finance for their excellent work during the financial crisis, and pointed out that agriculture, forestry and aquaculture are the new industries that Japan needs to support. The troika, now well, was directly slapped in the face by the speed of light.

Almost at the same time as the campaign speech was going on, Kitahara Sosuke received new instructions from the Tosan board of directors.

Standing upright, Miko Kato recounted the instructions of the head office. In response to the strong request of the Ministry of Finance and the Bank of Japan, banks that have participated in the capital injection of "housing specialties" must assist the reconstruction of seven "hospital specialties" by providing interest exemptions.

Bank bureau cadres came in person and "persuaded" several major metropolitan banks to implement this plan in a basically coercive manner.

As a result, the Kyoto Branch, which already has far insufficient reserves, will fall into an even more difficult situation. Everyone looks to Kitahara Sosuke, hoping that he can come up with a good solution to the problem.

"The interest exemption to assist in the restructuring of the 'Residential College' is a requirement of the Banking Bureau, but the Ministry of Finance is not qualified to order us to do anything. The person on the board of directors who promotes this plan is Director Gennai Ken, but I think that just using this This method is tantamount to chronic suicide. If the root problem is not solved, sooner or later we will fall into a similar deadlock."

Kithara Sosuke said calmly and expressed his opinion,

"I am opposed to this plan."

"But President Kitahara, this is just an order from the board of directors of the head office. If you do this, you are blatantly disobeying the order of the board of directors. We..." someone reminded in a low voice.

"If we do this, hundreds of billions will be wasted. Now that I have taken over the financing department, I will not do anything that goes against my principles. Don't worry, I will personally go to Tokyo and discuss this matter with the president. He said that our Kyoto branch will never be involved in the reconstruction of the 'residential college'. This is my attitude. If anyone is not convinced, you can speak up and I will not pursue it. Speak freely."

Kithara Sosuke smiled faintly.

The hearts of everyone below were twitching, what kind of joke were you kidding? Speak freely?

The last group of people who spoke freely now still don’t know which small micro-branch branch they are going to hand out leaflets at!

The Bank of Hyogo's problem is even more complex and dangerous.

As the largest second regional bank, Hyogo Bank had a large number of transferable deposits and large time deposits that were due to mature on December 25. However, it was discovered today that its capital turnover has reached a dead end.

The president of the Bank of Hyogo bypassed the major shareholder Sumitomo Bank and went directly to the Bank of Japan, hoping to obtain a ten-year financial assistance loan with low interest and a total amount of 10 trillion yen!

This sudden visit without any warning was inexplicably exposed by Kitahara Interactive Entertainment, and the financing crisis faced by Hyogo Bank suddenly became a hot topic and everyone knew it.

Kitahara Interactive Entertainment is still breaking news. The chaos and corruption within Hyogo Bank is jaw-dropping, and their actual deposit amount is only 1 billion yen away from the minimum amount. As the largest second regional bank supported by the government and a consortium, , actually the total deposit is only a few tens of billions of yen left!

Before the Sumitomo Foundation had time to react, long lines of people lined up at various branches of the Bank of Hyogo. The whole country was frightened, fearing that the bank would have no money, and ran frantically to withdraw money.

"It seems like something big has happened at the Bank of Hyogo."

"I heard that they will close their doors next Monday and run away!"

"The president of Hyogo Bank seems to be friends with the president of Yamaichi Securities. He lent a lot of money to Yamaichi Securities before."

"Yes, yes, look at the account manager of Shanyi Securities next door to me. He was so prosperous before, with luxury cars and mansions, but now I heard that he was driven to desperation by extremely evil people, and his wife has gone to the sea!"

Words like this are widely circulated in the streets.

After Kitahara Sosuke finished his regular morning meeting, he looked down from the large window sill and happened to see a dragon-like queue at the gate of the Kyoto branch of Hyogo Bank not far away. The people were frightened and wanted to take all their money. take out.

If this kind of bank run, which is enough to destroy a bank, cannot be contained, Hyogo Bank will probably lose its reputation today and be completely screwed.

Its collapse is not just the bankruptcy of a bank, but also means that Japan's unbreakable financial structure for hundreds of years has collapsed!