I am Da Song

Chapter 312 Profit and Mortgage

Lending is the core business of banks.

Zhao Huan set up the Royal Zhuqi Bank with reference to the West, in addition to expecting the royal family to be self-sufficient and reduce the burden on the people of the world.

The biggest purpose is to use banks to promote the prosperity of Song Dynasty's private industry and commerce, and to restrain the diseased usury industry in Song Dynasty.

Yan Ying asked the head of the bank to bring over the loan books for Zhao Huan to check and review.

At the same time, she personally introduced to Zhao Huan: "Although Zhuqi Bank inevitably has a high-ranking attitude, its authority has also been recognized by the people of Tokyo."

"Everyone knows that Zhuqi Bank is a bank of the royal family. It implements the prestige of the royal family and will never change its reputation overnight. Therefore, there are many borrowers."

"I encouraged business and industry, and reopened the Silk Road. Caravans are thriving. The folks need to increase the output of workshops, expand the scale of caravans, and enrich capital costs."

"In order to provide funds for the development of private industry and commerce, the banks have lent a total of 500 million guan."

500 million guan, which is higher than the annual tax revenue of the Song Dynasty.

Calculated at an interest rate of 540%, the interest rate for one year alone is as high as [-] million.

When Wang Anshi reformed the Young Crops Law, he envisioned that the people would have enough money without taxation, and this is the ideal situation that Wang Anshi envisioned.

But reality is always different from perfect vision.

Because the 8000 million coins are different from the 3000 million coins saved.Savings are stored in banks all year round, while loans are liquid funds that are borrowed and repaid.The [-] million is a cumulative value.

Otherwise, according to the interest rate of usury, if the [-] million yuan is borrowed for one year, there will be an income of [-] million yuan in the second year.Da Song didn't have to do anything, and he could achieve a fiscal revenue exceeding [-] billion in five years by relying on loans.

Zhao Huan looked through the account books, Zhuqi Bank's total profit last year was 190 million.

With a profit close to 1000 to [-] million, it is well-deserved that it is the most profitable business in Song Dynasty!
For comparison, the imperial family controls thousands of real estate properties in Tokyo, and they make a lot of money every day.Now every day, pay attention to every day, I can earn more than 1 yuan.The annual income is only 430 million.Only a third of the bank's income.

As for the Grange, let alone.Nearly 40 hectares of farms, that is, nearly one million acres of fertile land, can only pay [-] yuan in taxes.

Compared with Da Song's two most profitable industries, real estate and lending, they are nothing worth mentioning.

Zhao Huan's only doubt was, where did the bank get so much money to lend out?
"I remember that the royal family's strategic reserve funds in the bank are only 3000 million guan, and even with the absorbed funds, it is only 1000 million guan. How did the bank manage the accumulated amount of [-] million guan?"

Li Fengnian took the initiative to shoulder the responsibility, and explained to Zhao Huan: "The report to the official family is the money borrowed by the grassroots from the third division."

"The bank borrowed money from the third division?"

"Yes. Caomin borrowed [-] million yuan from the third company with gold and silver as collateral, and agreed to pay the third company [-]% interest every year."

This is capital leverage.

Zhao Huan's eyes lit up.

No wonder this Li Fengnian was able to overwhelm everyone and sit in the position of the head of the bank.

Although the ethos of the bank is full of usual arrogance, this does not mean that Li Fengnian is not capable enough.

In this feudal dynasty, it was not an easy task for the high-ranking royal consortium to bow its head and smile to serve the common people.

But just like, among the arrogant and corrupt scholar-bureaucrats, there are also outstanding people like Fan Zhongyan who worry about the country and the people, and have both ability and political integrity.

There is no shortage of talented individuals in the proud consortium.

Using financial leverage to obtain higher returns, Li Fengnian has undoubtedly done a very good job in displaying his personal abilities.

And this is also a good thing for the third division.

You must know that the third division is not only responsible for collecting taxes, but also minting coins.

The [-] million yuan lent to Zhuqi Bank did not come from the [-] million yuan collected from the people. Every penny of the [-] million yuan was invested in the national finance.

The [-] million coins must be the new currency printed by the third division, which was directly lent to Zhuqi Bank, so as to obtain the silver and gold reserves mortgaged by Zhuqi Bank.

It is equivalent to the country's increasing silver and gold reserves, printing more currency, and investing [-] million yuan to activate the economy.

It not only increased the national finance, but also promoted the development of private industry and commerce.

The cooperation between the bank and the third division can be described as a win-win situation. The bank has gained more profits, and the third division has quickly grasped the amount of private wealth and printed the corresponding currency.

Before and after only borrowing, [-] million yuan was borrowed. The economic activity and total wealth of the people in the Song Dynasty can be roughly calculated based on this.

According to the third division, before Jingkang, during the reign of Emperor You Zhiping, the two taxes accounted for 50.00% of the tax revenue of the Song Dynasty, which means that the national tax accounted for about half.The remaining non-agricultural taxes such as industry and commerce, franchises, and poll taxes accounted for half.

But this is the data from the Renzong period. After so many years of development from Yingzong, Shenzong, Zhezong, and Huizong to the present, the proportion of commercial taxation must have increased significantly.

Zhao Huan put down the account books, and told the bank executives surrounding him: "The country is already preparing for the collection of commercial tax, and the prosperity of private industry and commerce will determine the scale of our tax revenue. And whether commercial tax can account for [-]%, [-]% Even [-]% depends on how you people support business and activate the economy!"

Everyone immediately bowed and saluted, and Yan Ying said, "We must do our utmost to treat every merchant, workshop owner, and handicraft who borrows money seriously."

"Collect the account books, and wait for your encouragement. I don't want the country to encourage industry and commerce for so many years, and finally the proportion of industry and commerce tax will not increase but decrease."

Falling instead of rising is not Zhao Huan's unfounded worry.

But the reality before us.

A bit of dark humor.Since Jingkang, the state has fully encouraged industry and commerce, and the proportion of industrial and commercial taxes may be lower than before.

Finally, when we looked at the finances, we found that the Great Song Dynasty was actually more like an agricultural empire dominated by agricultural taxes than in previous years.

Because in the past, the country had two taxes, and the taxes collected were only tens of millions.The proportion of industrial and commercial tax can be halved.

However, the country has implemented a new law on the taxation of silver per mu, and the tax has been collected in one whip, and the regular tax has jumped from tens of millions to [-] million.

If the industrial and commercial tax is still maintained at a scale of tens of millions, the reduction in the proportion of taxation will be inevitable.

Agriculture was so important in the Great Song Empire, Zhao Huan had to pay special attention, and looked at everyone: "At the beginning, the country set up the Green Seed Law to alleviate the plight of the people who did not grow enough food when they planted in the spring. Usury merchants, landlords, and temples also Focus greedy eyes on poor people."

"The purpose of setting up the bank is to change the long-standing disadvantages and truly alleviate the plight of the people. So that all the people in the wild should not focus all their eyes on the poorest poor all the time."

"How about the young crop money loaned to the common people? Are there any restrictions on usury?"

(End of this chapter)