Keynes, the head of the British delegation, proposed to establish an international currency unit called "bank vouchers" and include the currencies of each country with a certain weight.

White, head of the US delegation: Plans to focus on the US dollar, the US dollar is focused on gold, and other currencies are focused on the US dollar

In the 1970s, the dollar faced pressure to depreciate; as soon as the dollar depreciates, the price of gold soars

Finally, the United States announced that the US dollar is no longer pegged to gold, and global currencies have entered the era of credit currency

The state and the bank are intertwined, shaping the concept of credit currency

The central bank issues currency by obtaining specific powers granted by the state.

In the 17th century, the British royal family cooperated with the Bank of England to exclusively grant the issuance rights of bank notes to the Bank of England.

From then on, bank notes issued by the Bank of England were officially granted national credit and became the legal currency of the UK

The state leads the issuance of legal tender, and can obtain long-term and stable funds, and the state's power becomes stronger

The government controls the credit scale of the entire society through currency issuance, regulates and controls the economy.

Central Bank = Reservoir

Legal currency = water in the reservoir

Other banks = water delivery station

Deposit reserve = how much water

Benchmark interest rate = price of water

Lower reserve requirement ratio (reduce deposit reserve ratio) = open the gate and release the water = more money in the market

Rate cuts (reduces interest on loans) = open the gate and releases water = more money in the market

Reserves = the amount of water in the reservoir = the amount of funds

The bank will not lend out all the depositors’ money, but will reserve a portion to cope with the cash withdrawal needs of some depositors. The reserved part of the money is called deposit reserves.

Through the banking system, the state regulates the credit scale and economic hot and cold of the entire society.

First, the state issues currency through the central bank; then, it absorbs deposits and lends through the commercial banking system, and carries out credit creation.

The ratio of bank retention is called the deposit reserve ratio

Assume that the deposit reserve ratio of all banks is 10%.

A deposits $100 in the bank, and the bank will loan the remaining $90

B got the $90 loan and will leave the $90 in another bank

This other bank will loan out $81 of the $90

Circulate in turn...

A deposit of $100 can be circulated at a deposit reserve ratio of 10%, and finally the money circulated in the entire society can reach $1,000.

If the deposit reserve ratio is increased to 20%, the final money in the market is $500 (100 times the countdown of 20%)

If the deposit reserve ratio is lowered to 5%, the final money in the market is US$2,000 (100 times the countdown of 5%)

It is the countdown of the reserve requirement ratio (i.e. the countdown of 10%)

In the case, the money supply in society has expanded by a full 10 times (i.e., the countdown of 10%)

$100 in the case

=Basic currency*currency multiplier

$1,000 in the case, is the currency circulating in society

The economic situation is not good, and banks may be worried that they will not be able to recover the loans.

The state lowered the reserve requirement ratio and banks are unwilling to lend, and the credit scale cannot increase, which will affect the credit expansion mechanism.

The amount of cash usage during the Chinese New Year and the holidays will increase. No bank exists, and the bank's credit expansion mechanism will also shrink.

The central bank releases water and supplements the supply of base currency, which is to replenish water for this mechanism of currency expansion.

The economy is overheated, the government raises interest rates and raises interest rates to shrink

The economy is too cold, the government cuts interest rates, lowering interest rates to stimulate the economy

The leverage effect of the commercial banking system will magnify the effect of interest rate hikes and interest rate cuts several times

Adjustments to deposit reserve ratio and interest rates affect stocks, bonds, and asset prices, affect personal job hunting and entrepreneurship

China's first-line macro analyst, annual salary of 15 million yuan, dividends, and the next level is also 4 million to 5 million yuan.

Window guidance: If the country wants to control loans, the central bank will tell the presidents of the four major banks

Systemic risk: China is the market rises, all rises; the market falls, all falls

Individual risk: Stock pricing in the US market fluctuates according to the situation of one's own company

The state strictly supervises industries and exits in a timely manner

Internet finance, P2P, banking channel business, etc. in the past few years

Reservoir cuts, interest rate cuts, shadow banking, IPO, PE, VC, etc.

Establish a financial thinking framework to have the ability to analyze and identify information

Use financial knowledge to solve practical problems, investment, business decision-making, and financial operations

The interest rate difference between the bank's deposits absorbed and the loans released

More than 90% of China's government bonds are purchased by commercial banks

Financial management products are often cooperated with other financial institutions, and banks only charge channel fees.

Banks attract small scattered funds and gather loans to those who need a lot of money

Banks gather funds at different times and match them to those with different periods of use of funds.

Banks need to bear the risk of not being able to recover the loan

About 3%

8%-9% of medium-sized enterprises, 14%-15% of small enterprises

Lower the threshold for bank entry and increase interbank competition

The country has liberalized interest rate controls, and bank deposit interest rates (capital cost) rises

Economic growth has changed from double digits to single digits

Investment opportunities decrease, loan demand decreases, loan interest rates decline

Banks' fund investment direction is restricted

Banks have strong ability to attract and raise funds

Banks will chase profits and have the urge to invest their funds in places where they make money

Financial intermediaries are subject to relatively loose supervision

Financial intermediary institutions have little money and weak fundraising ability

Financial intermediary institutions cooperate with banks to issue various innovative financial products and raise funds through banks

Banks cooperate with financial intermediaries such as securities, trusts, securities companies, and funds to launch some financial management products

These financial products bypass supervision and invest money in high-profit industries, making money together

These "bank-like" businesses do not have bank entities, but are like shadows, so they are called shadow banks.

Shadow banking is the result of the game between financial supervision and financial innovation, and a game of cat-and-mouse between financial institutions and financial supervision

China's real estate market was hot in 2010, and the country was worried about the economy being overheated, which restricted banks from issuing loans to the real estate industry.

Banks cooperate with trust companies, banks are used as channels for trust companies and issue financial products

Their money was invested in the most profitable real estate and infrastructure projects at that time

These bank wealth management products purchased by ordinary people do not guarantee capital, and the profit is as high as 10%.

Since 2012, there have been various bank wealth management product defaults

China CITIC Bank's "Zhongding Wealth" series of financial products

Ping An Bank's "Jujinbao" financial products

Bank of Communications' "Delibao" financial management products

Behind "Zhongding Wealth" is an enterprise called "Tongshang Guoyin Asset Management Co., Ltd."

This company mainly engages in equity financing plans, with its investment threshold starting from 500,000 yuan

This equity financing plan is raised through China Merchants Bank's selling financial products.

The return on investment is very high, with an annualized rate of return of 11%-13%, more than three times the deposit benchmark interest rate

Later, the economy declined, the company went bankrupt, the funds raised were missing, and the customers who purchased the financial products suffered heavy losses.

Customers buy bank wealth management products and think they are buying bank credit, but in fact they are not. Behind it is a high-risk equity financing plan

Be vigilant when investing in cash loans, consumer loans, micro loans, etc.

Bank sales means that banks are just middlemen

If you don't know where the product is to be invested, please do not buy it

It looks big and very famous, but if you don't give specific business performance details, you have to ask questions.

The interest rates of bank wealth management products often follow the changes in market interest rates.

Many financial products will invest in products with higher returns but higher risks.

On the market loan benchmark interest rate, floating 10%-20% is considered relatively normal

Select money funds with a high proportion of retail investors

Select a moderately sized money fund

Sensitive, dedicated management, frequent subscription and redemption, low security and liquidity

Too small in size, no bargaining chips to negotiate with banks, low yield

Too large, the competition to purchase has caused the price to rise, making it difficult to subscribe at the expected price

Approximately 40% of them are excluded

There are about 10 left to choose from

Fund transactions are calculated based on working days

Don't buy on Friday and don't redeem on Thursday

Redemption time points T 1, T 2, T 3

High requirements for flow, choose T 1

The tighter the funds in the market, the higher the yield

Funds are tight at the end of the month, the end of the quarter, the middle and the end of the year, and it is suitable for subscription

The famous pan-Asian financial fraud case in 2014 had nearly 7 billion financial products sold through the Inner Mongolia Branch of Bank of China.

Some banks have poor risk resistance and may face bankruptcy

Competition has led to higher deposit interest rates and increased bank deposit absorption costs

Bringing greater pressure to banks

Protagonist: The central bank is the lender of last resort

Operation: The central bank can provide short-term credit to financial institutions and inject liquidity into the market

Purpose: Cut the path of transmission of financial crisis, end panic, and set the last security barrier for the financial system

Financial markets are maintained by confidence, and any financial crisis can be regarded as a self-fulfilling prophecy.

To curb the crisis, you need to break the prophecy

Problems in financial markets usually start with liquidity issues.

Financial institutions generally borrow short-term loans, and the savings period they absorb are very short, while the loans released are very long.

When a crisis occurs, banks may face liquidity problems and funds are exhausted

Fund exhaustion will further cause panic selling, releasing pressure and pessimism to the market

At this time, the central bank is the last lender, allowing the bank to quickly obtain cash and replenish liquidity

Background—The economic crisis in 1929, the US stock market crashed, many financial institutions ran and liquidated, and enterprises went bankrupt

Reason - At that time, the United States pursued classical economic theory, that is, the absolute free market theory. The US government and the Federal Reserve advocated keeping the troops in motion and letting the market heal itself

Development - The crisis spreads to Europe and the world. Germany is the most weird thing, with huge compensation from one war, people march on the streets

As a result - German populism is rising, Hitler's Nazi government comes to power, and World War II breaks out

Afterwards - the Federal Reserve failed to perform its last lender of duty at the time, and was numb and slow to react to bank runs, resulting in a series of bank bank bank bankruptcy and the company fell into a desperate situation, which helped the collapse of dominoes.

Background—In 2007, the real estate bubble in the United States burst, and there were a large number of defaults on housing mortgage loans, triggering the subprime mortgage crisis

Operations - The Federal Reserve cooperates with major countries around the world (G7) to actively rescue the market, jointly issue a statement to take measures to prevent the bankruptcy of important financial institutions

Subsequently - The Federal Reserve increases discounts to financial institutions, guarantees cash, prevents discounts, and calms investors' panic and escapes

As a result—This financial crisis lasted much shorter, and there was no major social unrest

The financial crisis in the British banking economy in the 18th century caused a great impact on society

The Bank of England has tried to provide discounting services to other banks in extraordinary times and act as lenders of last resort to alleviate market panic

Walter Bagehot (Reporter Walter Bagehot) proposed relevant measures based on this

On the one hand, during times of panic, as long as banks and financial institutions have high-quality and safe collateral, the central bank should lend

On the other hand, central banks also need to impose high punitive interest rates on temporary emergency loans in case institutions without loan demand hitchhikes