Reborn Tokyo Golden Age

Shirakawa Kaede chose Yashiro Masaki as the leader of Shirakawa Naganobu Bank because of his rich restructuring experience in the banking industry.

When he was president of Citibank's Neon branch, the consumer business he was responsible for was losing $30 million a year when he first took over.

When he left a few years later, the business was generating $100 million in annual profits.

More importantly, he witnessed Citibank's history of successfully escaping from huge bad debts and on the verge of bankruptcy through a series of powerful restructuring measures.

Because of this experience, he was able to make firm and bold decisions at critical moments.

This is why Shirakawa Kaede now invites him to serve as the president of Shirakawa Naganobu Bank. The former Citigroup is so similar to the current Naganobu Bank.

When asked by Shirakawa Kaede about his future plans for Shirakawa Naganobu Bank, Yashiro was unequivocal and started with drastic reforms.

“First of all, it is clear that Shirakawa Naganobu Bank takes commercial banking as its basic business, and consumer retail banking business is our future focus.

Relying solely on corporate investment bank loans cannot support a large international bank.

It happens that the former Beidu Bank has great experience in consumer business, so I am planning to form a new sales team and recruit a large number of women to participate. "

Although Yashiro is an international, he knows that women control many financial decisions in this country.

There will be unexpected gains when conducting bank sales business from their perspective.

Regarding his unconventional approach, Bai Chuanfeng didn't say anything and nodded directly in agreement.

Don't use it if you doubt it, don't doubt it if you employ it.

Since Shirakawa Naganobu has been handed over to him, he must be given room to fully develop.

Seeing that the big boss agreed to his policy, Bacheng became more confident.

"In addition, I plan to directly abolish the corporate planning department, and abolish Changyin's original annual merit system and replace it with a capability system."

As soon as these words came out, Onoki and Hirao felt a sense of panic.

It would be better to abolish the corporate planning department and abolish the annual merit system.

The two major features of Neon Traditional Enterprises are the lifetime employment system and the annual merit system.

Although they have certain flaws, they have also allowed many companies to last for hundreds of years.

Now that one of them is directly abolished, it is still in a bank with a state-owned background like Changyin. So what will the former colleagues of Changyin think?

However, before Onoki and the others could think about it, Bai Chuanfeng nodded in agreement without hesitation.

“Yes, Neon’s economy is already undergoing earth-shaking changes, and companies that cannot keep up with the changes will eventually be eliminated.

If any internal employee has an opinion, don’t persuade them, just tell them directly. Shirakawa Naganobu Bank is a survival of the fittest. "

Bai Chuanfeng immediately expressed his support for Bacheng's approach. Does he really think he wants all the old antiques from Changyin?

If it weren't for the pressure from the Ministry of Finance, he would have laid off at least half of the original Changyin staff.

Due to the seniority system, many people have little ability, but their salaries have accumulated to astonishing levels.

Now it's good to have eight cities to start with. Those who are incompetent should leave, and those who should retire should retire. In this way, I can save a lot of personnel expenses.

With Shirakawa Kaede's support, Yashiro's back straightened a bit.

“In addition, I suggest that if you want Shirakawa Bank to grow into a qualified international bank.

Then the hiring of foreign experts is also essential. Neon's current banking system is too rigid and change is imminent. "

No one has an opinion on this point. As people in the game, they know the corruption of Neon Banking better than anyone else.

"There is also the transformation of the information system, which also needs to be carried out immediately."

It is hard to imagine that as a well-known large bank, Changyin still relies on manual execution of many processes.

Computers are not used where they should be used, and disks are still used in large areas.

Please, optical disks, hard disks, and SSDs have become widely popular, and disks with a size of several megabytes should have been eliminated long ago.

"SSM can support information transformation. If you have any needs, please contact them directly."

As a professional software company under Shirakawa Holdings, SSM has experience in customizing systems for many companies.

Yashiro certainly had no objection to Shirakawa Kaede's suggestion.

Using your own family can save a lot of money. Now is the time for Shirakawa Naganobu Bank to tighten its belt. Every little bit you can save is worth it.

"Our lending model also needs to make certain changes." Finally, Bacheng mentioned the bank's basic business.

"Tell me more about it." Bai Chuanfeng gestured to him to speak freely.

“First, new risk control standards must be established and existing lenders re-evaluated.

When a loan does not meet the new standards, customers have three options.

1. Repay the loan.

2. Pay a higher interest rate.

3. Provide better collateral.

If rejected, the loan will be revoked or returned to the government.

To sum it up in one sentence, point the gun at the head of a weak customer. "

Tsk, this move is cruel enough!

But Shirakawa Kaede likes it~

"Draft new risk control standards as soon as possible and then implement them according to this model."

The first thing Bai Chuanfeng has to deal with is the 1.6 trillion non-performing assets. Rather than letting them linger on, those real estate developers would be better off going bankrupt.

After bankruptcy, the real estate under their names will all belong to Shirakawa Naganobu Bank.

Even Shirakawa Naganobu Bank now has a lot of real estate under its name, including sixteen commercial buildings alone.

Toranomon Building and Shiba Park Building all belong to it. There are also Nuogan's apartments and land, which can also be regarded as a type of assets.

Shirakawa Kaede's initial plan is to entrust them to Shirakawa Real Estate Management.

Rent out what should be rented, sell what should be sold, or if it doesn't work, just build your own apartment and keep it for rent.

Tokyo's population will increase in the future, so there will be no need to worry about people renting houses.

It is initially expected that the rental income from these real estate properties will definitely be higher than the interest on the loans.

In this case, they cannot be regarded as non-performing assets, but turned into treasure.

The merger of Changyin and Beidu Bank can be regarded as complementary in business.

One specializes in business loans and the other specializes in consumers.

The combination of the two is expected to be on the right track in two years and achieve profitability in three years.

Loss in the past few years should be inevitable. After all, Neon's current overall financial environment is in the midst of a cold wave.

Less than half a year after Changyin was merged and Shirakawa Naganobu Bank was newly established, another Neon bank disappeared.

This time it was a real bankruptcy, not a merger.

The first are Hyogo Bank, Hanwa Bank, and Tokuyo City Bank, these small local banks.

Due to their limited size, their ability to resist risks is much worse than that of big banks.

So they were the first to fall, and then securities companies also began to go bankrupt.

The successive failures of these small banks and bond companies seemed to be a trigger, causing Neon's financial industry to collapse rapidly.

Especially in 1994, Tokyo Kyowa Kyowa Credit Union and Security Credit Union.

Because they faced a situation of being unable to recover after providing excessive loans to the EIE Group, they fell into a bankruptcy crisis.

Regarding the handling of the problems of these two credit unions, then Bank of Japan President Yasushi Mieye issued a declaration.

“It is not the job of central banks to bail out all financial institutions that are on the verge of bankruptcy.”

As a result, the two credit unions went into bankruptcy.

Harunori Takahashi, who used his authority to embezzle funds from two credit unions without authorization, was also arrested by the Metropolitan Police and sent to a sewing machine.

With the bankruptcy of these small and medium-sized financial institutions, the financial winter has officially arrived.

In response to the increasing number of bankrupt small and medium-sized banks, the Ministry of Finance has simply become a "clearing bank" for the purpose of protecting depositors.

During this period, the Bank of Finance of the Ministry of Finance actually tested several major banks in private.

Ask them if they would be willing to contribute capital if a receiving bank were to be set up to deal with problem banks.

However, the large banks are very indifferent and have a lot of problems themselves. How can they find the time to support these small banks?

Even Baichuan Bank has been asked by the Ministry of Finance, but Changyin has not yet digested it, so Baichuan Feng has no energy to bother with other matters.

Besides, these small banks have been evaluated in Bicheng and there is nothing worth taking action on.

This wave of bankruptcies of small banks is likely to last for two years after Shirakawa Naganobu Bank’s internal evaluation.

When there is a second wave in two years, the big banks may be in trouble.

Seeing that the situation was not good, Congress had no choice but to prepare to spend money again after allocating 12 trillion yuan in special relief funds last time.

Because the situation is getting worse and worse, the previously estimated 50 trillion bad debts have become history, and this number may be doubled.

The disastrous consequences of the financial tsunami are still raging, and ordinary people in Neon are increasingly feeling the chill.

As time entered 1994, suddenly a large number of companies began to lay off employees.

In recent years, not only the financial industry has been in chaos, but other industries have gradually entered a state of depression.

In 1990, corporate sales were 1,428 trillion yen. This year, the number is 1,485 yen.

In other words, in the past four or five years, Neon's economy has basically come to a standstill.

No, to be precise, it should be backwards.

Because with the appreciation of the yen, corporate profits in 1990 were 50 trillion, but this year they have become 35 trillion.

Operating profits have plummeted by 30%, and the situation is even continuing to worsen. Therefore, major companies that feel the cold winter are cutting costs.

So let alone the bonuses that were given several times a year in the past, now the subsidies are pitiful.

What's more, many people can't even keep their jobs. Gone are the scenes where hundreds of thousands of yen were given away in order to rob college students.

Suffering a series of blows such as salary cuts, benefit cuts, layoffs, and inability to find jobs, people suddenly woke up and it seemed that the golden age was over~

Not only is the golden age over for ordinary people, but also for businesses.

The DRAM chip business that once made the entire Neon proud, now the market share occupied by Neon companies is only more than 40%.

Compared with more than 80% at the peak, it has been cut in half, and the situation continues to worsen.

However, the irony is that Laomi, who imposed sanctions on it, did not increase its own share, but Bangzi, who had no sense of existence, quietly gained nearly 30% of the share.

However, the depression had just begun, and the lost Heisei era had just begun.