The Bahrain Bank incident, looking at the global financial industry, is actually not a big deal. But the reason why it shocked the global financial market is mainly because it exposes the risk control capabilities of large banks.

At the same time, after the bankruptcy of Bahrain Bank, it will indeed burn its operations, affecting hundreds of financial institutions around the world. Hong Kong's HSBC and Standard Chartered have actually been affected to a certain extent, but the losses are not as big as Hang Seng Bank.

The main reason is that Hang Seng Bank does not have many self-operated outlets in the international market. In order to expand its business, it has to cooperate with some local financial institutions.

The purpose of cooperating with Bank of Bahrain is to expand Hang Seng’s services to the British market. Since Hang Seng does not have British outlets, it has to cooperate with Bahrain to deposit a part of the funds in Bank of Bahrain to improve the arrival time and efficiency of Hang Seng’s Internet Banking Internet transfer in the UK.

Although Lin Qi knew the bankruptcy of Bahrain Bank, he did not pay attention to the specific operations of its subsidiaries in advance. Therefore, he never expected that Hang Seng Bank was the most damaged financial institution in the bankruptcy of Bahrain Bank.

In fact, some media in Hong Kong use Hang Seng Bank as a negative example and mocks the nouveau riche Hang Seng Bank for its risk control capabilities far less than HSBC.

Of course, you don’t need to investigate at all, just know that these news must be instructed by Hang Seng Bank.

In the past five years, Hang Seng Bank has quickly narrowed the gap with HSBC in terms of market value, deposit scale and profit. Originally, Hang Seng's market value and profit were about one-fifth of HSBC, and most investors only regarded Hang Seng as a narrower version of HSBC. No one believes that Hang Seng will one day be on par with HSBC.

However, after Hang Seng was incorporated by Xinchuang Electronics Group, it has a series of operations that are incomprehensible to the market. It has entered the mainland Chinese market and has become the world's first Internet bank, first to provide online payment solutions. Online banking emerged, which is equivalent to helping the Internet complete traffic monetization.

Before the Internet traffic is linked to currency, it can only do some advertising, and the traffic value is also very low. However, with the solution of payment problems on the Internet, more and more customers are online banking and online payment. When any Internet access user can easily make payment transfers, the traffic value on the Internet will naturally become more and more valuable.

Hang Seng Bank, which first provided online banking, is currently the absolute leader in the online banking market, with 8.5 million online banking customers.

It is also because it benefits from the economic development of the domestic market and the user dividends brought by the Internet market that the dual-wheel engines have led to Hang Seng's current development momentum being far better than HSBC.

Although HSBC has the status of a Hong Kong banknote issuing bank, it helps increase credit. In fact, the banknote issuing bank itself needs to occupy a large amount of US dollar foreign exchange deposits, and how many US dollars can it issue Hong Kong dollars. In addition to having a credit bonus locally in Hong Kong, it does not necessarily have more benefits.

It is precisely because of this that Hang Seng Bank's development momentum is far better than HSBC. In addition, HSBC is a little unhappy about Hang Seng Bank, the former younger brother, gradually becoming equal to itself, so the friction between the two banks is getting more and more.

This time, Hang Seng Bank stepped on the thunder, and HSBC would be a real ghost if it didn't seize the opportunity to discredit it.

"Boss, I'm sorry, I let you down!" Hang Seng Bank ceo Lin Weizhong explained lightly in front of the media and investors, but he still understood that the more important thing was to explain to Lin Qi, the actual controller of Hang Seng Bank, "Before the incident of the Bahrain Bank, in fact, in Singapore, Japan and other places, the Bahrain Bank had some abnormal capital flows. We only thought that it was a Bahrain Bank's customer and used the Bahrain Bank's channel to make some investments, but we did not expect that it was Bahrain Bank's own employees who conducted such high-risk speculation! If we have a deep understanding, it may reduce the scale of cooperation with Bahrain Bank and the losses will also be reduced..."

"Lao Lin, there is no need to feel too guilty about the Black Swan incident of Bahrain Bank." Lin Qi instead comforted Lin Weizhong, "The top priority is that Hang Seng Bank must learn from the lessons of the Bahrain Bank incident and strengthen risk control management. Enterprises with higher risks should set up independent operation subsidiaries to isolate them from the main enterprises of Hang Seng Bank. The main enterprises must be traditional businesses such as deposits and loans! Banks can innovate in technology serving users, but innovation is mainly a technology that makes customers feel better. For example, online banking technology makes users transfer, payment and operation more convenient, which is a high-quality technological innovation. As for,

Banks go to stocks, futures, foreign exchange, and especially if leverage, which means they are going crazy and crazy. Banks are not the ability to make huge profits, but the ability to serve customers and risk control capabilities! Online banking, based on the Internet, extends the tentacles of service beyond physical outlets, which improves our service quality and efficiency. These advantages must be strengthened. In addition, in terms of risk control, it is better to be conservative and cautious, make less money and do less large projects, and avoid encountering a catastrophe. For banks, being able to survive for a long time is more important than pursuing short-term profits!"

Lin Weizhong smiled and said, "Boss, we have always been the bank that attaches the most importance to risk control before. 99% of the loans are loans below 1 million yuan. 90% of the loans are even less than 10,000 yuan. For all loans, we have long tracked and analyzed their qualifications. Large loans worth hundreds of millions of yuan are basically rarely done. In addition, deposit and loans, credit cards and fund transfer services have always been our core. We have always been cautious about securities, funds, insurance, trusts and other businesses. Even if we do it, we will earn the handling fee of customers and will never go out to take risks in person..."

Lin Qi thought for a while and said, "In fact, you can try to see if the crisis can be turned into an opportunity!"

"Turn crisis into opportunity?" Lin Weizhong was puzzled.

"You can try to operate debt-to-equity conversion!" Lin Qi thought for a while and said, "This is equivalent to injecting capital, improving the balance sheet of Bahrain Bank and revitalizing Bahrain Bank."

Lin Weizhong frowned and said, "However, it is hard to say how big the pit of the Bahrain Bank is. Moreover, after bankruptcy and liquidation, it is estimated that it will be difficult to retain more than 20 billion assets and customers."

"However, Bahrain Bank has a large number of skilled employees and financial licenses." Lin Qi said with a smile, "Acquiring Bahrain Bank, cutting off a large amount of self-operated capital investment business, and no longer doing things to gamble with your own money. Instead, vigorously develop Bahrain Bank's securities brokerage, fund and other businesses. Funds and securities businesses are mainly to earn management fees and commissions. Especially in the Internet era, Internet brokers and fund issuance and sales platforms will grow in size and it will be difficult to lose money. You think, how simple is Internet-based securities trading, customers can directly go online at home and online.
Chapter completed!