After waiting for nearly forty minutes, it was finally Miyashita Kita's turn to be questioned. Under the leadership of the staff, he left the seat reserved for the experts and walked onto the speech stage. This was also the first time he entered the chamber of the Japanese House of Representatives in the name of being questioned.
Supervisor Akamoto, please take an oath. When Miyashita Kita stood on the speech stage, Tagako Doi, as the host, said first, to ensure that your next speech is completely in line with the facts, there are no false or deception and other statements that do not conform to the facts.
There was a Japanese Constitution on the spokesperson. Miyashita Kita pressed his right hand on the Constitution and made an oath. At this point, the questioning entered the formal stage.
According to the process, Miyaji Kita needs to first explain the profit and loss data of Changxin Bank in the past five years. The provision of these data needs to be very detailed, including the bank's reserve ratio, bad debts, profits and deficits, etc.; at the same time, it also explains the dividend rules of bank shareholders and senior officials; to avoid deteriorating operating conditions, the efforts made by banks and the actual results achieved.
Because of the professions he worked in his previous life, Kita Kita Miyashita was very sensitive to this data. The sensitive result was that he had a very deep memory of the corresponding data. When explaining these data, he was naturally very smooth.
He could stand on the stage and talk freely without even reading the manuscript, because everything hit his mind
This is completely different from the performance of previous executives of several banks, because those old guys don’t look at the data table in their hands, and don’t even know what the data in related aspects is. What’s even more tragic is that even if someone reads according to the data table, they will read it stumblingly, and even read it wrongly.
To be honest, among the many members sitting in the committee seat, everyone knew Miyashita Kita, and they also knew the ugly guy's roots and feet, and what kind of education he came from. Therefore, when seeing Miyashita Kita's performance, the sixteen members of the committee present showed their faces on each of them.
After the explanation of Miyajiki Kita ended, the first person to come forward to ask questions was a thin and gray-haired MP. This person was Nikai Toshihiro, the leader of the new party, who was the leader of the new party.
Speaking of which, this Mr. Nikai Toshihiro is still very interesting. He is Ichiro Ozawa's best friend. At the beginning, he followed Ichiro Ozawa to rebel against the Liberal Democratic Party and formed another new student party. Then, he left the new student party and joined the new party.
According to the historical process of the previous life of Miyashita Kita, he would then join the Liberal Party and the Conservative Party one after another. Finally, after a long turn, he returned to the Liberal Democratic Party.
Supervisor Akamoto, Nikai Toshihiro adjusted the microphone in front of him, staring at Miyashiki Kita on the stage, and asked, "Please answer according to the facts. LTCB has provided loans of more than 300 billion yen to the EIE Group in the past seven years. Do these loans comply with the regulations? Are there any ulterior insider transactions between LTCB and EIE?
LTCB refers to Changxin Bank, while EIE Group is a large multinational group that mainly operates hotels, hotels and high-end entertainment facilities. The two directly have long-term business relationships. Of course, EIE has also caused huge economic losses to Changxin Bank.
The new party where Toshihiro Nikai belongs to the opposition party, and the questions they raised are naturally quite sharp. Miyashita Kita has long been mentally prepared for this. Therefore, when facing this problem, the expression on his face was very calm.
The committee, in the business dealings between LTCB and EIE, it is impossible to make every loan comply with financial regulations. Miyashita Kita looked at the many members of the audience and said in a calm tone. It can even be said that in the entire financial system of Japan, it is impossible to make every loan comply with the regulations.
The people need an explanation, Nikai Toshihiro said
Changxin Bank's current non-performing assets are as large as 1.200 billion yen. Miyashita Kita said that EIE accounts for more than 300 billion yen of these non-performing assets, but we all know that the capital losses caused by EIE bankruptcy are not only these 300 billion yen, but nearly twelve trillion yen. In other words, its largest borrower is not Changxin Bank. We can take a look at the source of loans obtained by the EIE Group in the past decade. Agricultural, forestry and gold specialty is its largest borrower.
Noisy talk sounded on the rostrum. Yes, most of the members present were unaware of this information, because as a state-owned financial institution, its operation will not be explained to the Congress.
As early as five years ago, Changxin had already noticed that there might be problems with the EIE Group. Miyashita Kita continued to say that many of their overseas acquisition projects had problems with the acquisition price and construction costs. Therefore, at the end of 1992, the former supervisor of Changxin Bank, Mr. Akamoto, proposed to audit EIE's overseas projects to suit the problem of false reporting in various projects. However, this proposal was rejected by the Financial Bureau of the Tripitaka Province at that time. Not only that, Changxin Bank was also under pressure from all sides and was eventually forced to ignore these issues and continue to add loans to the EIE Group.
The discussion on the rostrum became louder, and some MPs asked loudly: Is there any evidence for what you said?
Of course, Miyashita said calmly, I have no evidence, but I can only guarantee that everything I said is true. After all, in 1992, I had not joined Changxin Bank. After I joined Changxin Bank, Changxin never provided EIE with a loan of even 1 yen. So, as an individual, I am not responsible for the business transactions between Changxin Bank and EIE
The discussion on the rostrum continued for a while, and it was not until Tagako Doi beat the hammer that the scene became quiet again
Supervisor Akamoto, according to your statement, the crisis of Changxin Bank is already very serious, and another member of parliament asked, "So, in your opinion, does the "Renewal Law" apply to Changxin Bank?"
Senator Suno, Kita Kita said without hesitation that whether the "Renewal Law" applies to Changxin Bank depends on how big the economic blow Japan can withstand. Today, Changxin Bank has business relationships with more than 100 financial institutions and small and medium-sized life insurance companies in Japan. It has more than 470 corporate customers and provides long-term credit loans to more than 130 large enterprises. It is certain that once Changxin Bank announces that it follows the "Renewal Law" and enters the bankruptcy liquidation stage, the direct economic losses it brings will exceed 3 trillion yen. In the long run, the indirect economic losses it causes will be difficult to estimate the further shrinkage of the manufacturing industry, and the people have doubts about the credit of the financial system. The bankruptcy liquidation of a large number of companies will cause a disaster. This is my answer to this question
Supervisor Akamoto, is this the so-called "big but not falling" theory in finance? The MP who asked the previous question stood up from his seat and said angrily, "Are you thinking this way?"
Miyashita's face calmly dissipated his eyes, looking at the direction of the expert seat, and said: Changxin Bank is indeed facing major risks today, but this risk is not strong enough to declare a bankruptcy and liquidation. If Changxin Bank does not receive effective support from the government in the future, we will choose to save ourselves. Specific measures, including further shrinking loans and recovering the funds that have been released.
Since someone in the parliamentary seat proposed that it is big but not falling, then Miyashita Kita simply explained his position more clearly. Yes, Changxin means that it is big but not falling. Not only Changxin, I believe that every so-called financial expert present today and the bank they represent behind them all have this idea.
The current recession in Japan's economy is mainly concentrated on the lack of liquidity in the market, that is, various financial institutions are shrinking lending, resulting in a lack of funds for domestic enterprises' operations.
If this contradiction continues to deepen, it will lead to a paralysis of the market. This paralysis will affect every industry, and ultimately lead to a continuous rise in unemployment rate and a sharp decline in national income.
Of course, this economic performance will last for a long time before being felt by the people, but before the economic performance is completely revealed, the bleak market atmosphere and pessimistic emotions will spread out first, resulting in a recession in the stock market.
In short, it is a disaster, an artificial disaster caused by the financial industry
Therefore, what is called big but not falling in the financial sciences is that some or several huge financial groups tie themselves to the entire industry, and ultimately let taxpayers in the entire country take responsibility for the risk behavior they have made
For the government, once such financial groups have risks, they must make a dilemma: either let the taxpayers bear the losses for these financial groups, that is, to use taxes to save these financial groups, or they have to sit idly by and watch the entire country's economy collapse
What is even more difficult than a dilemma is that once the government uses taxes to save these financial groups, it is equivalent to giving these guys a kind of encouragement. After they overcome the difficulties, they will do more and more. Anyway, someone will pay for it after the accident.
Of course, for a government, they have a third choice, which is to strengthen supervision of the financial industry and bind the hands and feet of those greedy investment elements. It is not easy to do this. After all, the government is also composed of people, and human nature is greedy
Nowadays, Kita Kita doesn't care whether Changxin goes bankrupt or not. For him, if Changxin doesn't fall, he can continue to lose his life. If it falls, he will have the opportunity to take the bank into his arms. Both results seem to be bad for him.
Supervisor Akamoto, please take an oath. When Miyashita Kita stood on the speech stage, Tagako Doi, as the host, said first, to ensure that your next speech is completely in line with the facts, there are no false or deception and other statements that do not conform to the facts.
There was a Japanese Constitution on the spokesperson. Miyashita Kita pressed his right hand on the Constitution and made an oath. At this point, the questioning entered the formal stage.
According to the process, Miyaji Kita needs to first explain the profit and loss data of Changxin Bank in the past five years. The provision of these data needs to be very detailed, including the bank's reserve ratio, bad debts, profits and deficits, etc.; at the same time, it also explains the dividend rules of bank shareholders and senior officials; to avoid deteriorating operating conditions, the efforts made by banks and the actual results achieved.
Because of the professions he worked in his previous life, Kita Kita Miyashita was very sensitive to this data. The sensitive result was that he had a very deep memory of the corresponding data. When explaining these data, he was naturally very smooth.
He could stand on the stage and talk freely without even reading the manuscript, because everything hit his mind
This is completely different from the performance of previous executives of several banks, because those old guys don’t look at the data table in their hands, and don’t even know what the data in related aspects is. What’s even more tragic is that even if someone reads according to the data table, they will read it stumblingly, and even read it wrongly.
To be honest, among the many members sitting in the committee seat, everyone knew Miyashita Kita, and they also knew the ugly guy's roots and feet, and what kind of education he came from. Therefore, when seeing Miyashita Kita's performance, the sixteen members of the committee present showed their faces on each of them.
After the explanation of Miyajiki Kita ended, the first person to come forward to ask questions was a thin and gray-haired MP. This person was Nikai Toshihiro, the leader of the new party, who was the leader of the new party.
Speaking of which, this Mr. Nikai Toshihiro is still very interesting. He is Ichiro Ozawa's best friend. At the beginning, he followed Ichiro Ozawa to rebel against the Liberal Democratic Party and formed another new student party. Then, he left the new student party and joined the new party.
According to the historical process of the previous life of Miyashita Kita, he would then join the Liberal Party and the Conservative Party one after another. Finally, after a long turn, he returned to the Liberal Democratic Party.
Supervisor Akamoto, Nikai Toshihiro adjusted the microphone in front of him, staring at Miyashiki Kita on the stage, and asked, "Please answer according to the facts. LTCB has provided loans of more than 300 billion yen to the EIE Group in the past seven years. Do these loans comply with the regulations? Are there any ulterior insider transactions between LTCB and EIE?
LTCB refers to Changxin Bank, while EIE Group is a large multinational group that mainly operates hotels, hotels and high-end entertainment facilities. The two directly have long-term business relationships. Of course, EIE has also caused huge economic losses to Changxin Bank.
The new party where Toshihiro Nikai belongs to the opposition party, and the questions they raised are naturally quite sharp. Miyashita Kita has long been mentally prepared for this. Therefore, when facing this problem, the expression on his face was very calm.
The committee, in the business dealings between LTCB and EIE, it is impossible to make every loan comply with financial regulations. Miyashita Kita looked at the many members of the audience and said in a calm tone. It can even be said that in the entire financial system of Japan, it is impossible to make every loan comply with the regulations.
The people need an explanation, Nikai Toshihiro said
Changxin Bank's current non-performing assets are as large as 1.200 billion yen. Miyashita Kita said that EIE accounts for more than 300 billion yen of these non-performing assets, but we all know that the capital losses caused by EIE bankruptcy are not only these 300 billion yen, but nearly twelve trillion yen. In other words, its largest borrower is not Changxin Bank. We can take a look at the source of loans obtained by the EIE Group in the past decade. Agricultural, forestry and gold specialty is its largest borrower.
Noisy talk sounded on the rostrum. Yes, most of the members present were unaware of this information, because as a state-owned financial institution, its operation will not be explained to the Congress.
As early as five years ago, Changxin had already noticed that there might be problems with the EIE Group. Miyashita Kita continued to say that many of their overseas acquisition projects had problems with the acquisition price and construction costs. Therefore, at the end of 1992, the former supervisor of Changxin Bank, Mr. Akamoto, proposed to audit EIE's overseas projects to suit the problem of false reporting in various projects. However, this proposal was rejected by the Financial Bureau of the Tripitaka Province at that time. Not only that, Changxin Bank was also under pressure from all sides and was eventually forced to ignore these issues and continue to add loans to the EIE Group.
The discussion on the rostrum became louder, and some MPs asked loudly: Is there any evidence for what you said?
Of course, Miyashita said calmly, I have no evidence, but I can only guarantee that everything I said is true. After all, in 1992, I had not joined Changxin Bank. After I joined Changxin Bank, Changxin never provided EIE with a loan of even 1 yen. So, as an individual, I am not responsible for the business transactions between Changxin Bank and EIE
The discussion on the rostrum continued for a while, and it was not until Tagako Doi beat the hammer that the scene became quiet again
Supervisor Akamoto, according to your statement, the crisis of Changxin Bank is already very serious, and another member of parliament asked, "So, in your opinion, does the "Renewal Law" apply to Changxin Bank?"
Senator Suno, Kita Kita said without hesitation that whether the "Renewal Law" applies to Changxin Bank depends on how big the economic blow Japan can withstand. Today, Changxin Bank has business relationships with more than 100 financial institutions and small and medium-sized life insurance companies in Japan. It has more than 470 corporate customers and provides long-term credit loans to more than 130 large enterprises. It is certain that once Changxin Bank announces that it follows the "Renewal Law" and enters the bankruptcy liquidation stage, the direct economic losses it brings will exceed 3 trillion yen. In the long run, the indirect economic losses it causes will be difficult to estimate the further shrinkage of the manufacturing industry, and the people have doubts about the credit of the financial system. The bankruptcy liquidation of a large number of companies will cause a disaster. This is my answer to this question
Supervisor Akamoto, is this the so-called "big but not falling" theory in finance? The MP who asked the previous question stood up from his seat and said angrily, "Are you thinking this way?"
Miyashita's face calmly dissipated his eyes, looking at the direction of the expert seat, and said: Changxin Bank is indeed facing major risks today, but this risk is not strong enough to declare a bankruptcy and liquidation. If Changxin Bank does not receive effective support from the government in the future, we will choose to save ourselves. Specific measures, including further shrinking loans and recovering the funds that have been released.
Since someone in the parliamentary seat proposed that it is big but not falling, then Miyashita Kita simply explained his position more clearly. Yes, Changxin means that it is big but not falling. Not only Changxin, I believe that every so-called financial expert present today and the bank they represent behind them all have this idea.
The current recession in Japan's economy is mainly concentrated on the lack of liquidity in the market, that is, various financial institutions are shrinking lending, resulting in a lack of funds for domestic enterprises' operations.
If this contradiction continues to deepen, it will lead to a paralysis of the market. This paralysis will affect every industry, and ultimately lead to a continuous rise in unemployment rate and a sharp decline in national income.
Of course, this economic performance will last for a long time before being felt by the people, but before the economic performance is completely revealed, the bleak market atmosphere and pessimistic emotions will spread out first, resulting in a recession in the stock market.
In short, it is a disaster, an artificial disaster caused by the financial industry
Therefore, what is called big but not falling in the financial sciences is that some or several huge financial groups tie themselves to the entire industry, and ultimately let taxpayers in the entire country take responsibility for the risk behavior they have made
For the government, once such financial groups have risks, they must make a dilemma: either let the taxpayers bear the losses for these financial groups, that is, to use taxes to save these financial groups, or they have to sit idly by and watch the entire country's economy collapse
What is even more difficult than a dilemma is that once the government uses taxes to save these financial groups, it is equivalent to giving these guys a kind of encouragement. After they overcome the difficulties, they will do more and more. Anyway, someone will pay for it after the accident.
Of course, for a government, they have a third choice, which is to strengthen supervision of the financial industry and bind the hands and feet of those greedy investment elements. It is not easy to do this. After all, the government is also composed of people, and human nature is greedy
Nowadays, Kita Kita doesn't care whether Changxin goes bankrupt or not. For him, if Changxin doesn't fall, he can continue to lose his life. If it falls, he will have the opportunity to take the bank into his arms. Both results seem to be bad for him.
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