King
Chapter 1152 - 1152 180 6 Million Huge Financing_2

1152: Chapter 180, 6 Million Huge Financing_2 1152: Chapter 180, 6 Million Huge Financing_2 The situation’s changes directly affected everyone’s judgments.

As a consequence, the Near East Development Bank’s cash flow continued to decrease, and Hudson had already invested multiple times to support the bank’s liquidity.

Not only did he tap into his own treasury, but he also managed to draw out the treasuries of Maxim and Belsden.

Unlike other customers’ savings, the money from Maxim and Belsden accrued interest at the same rate as the bank’s external loans.

With such diligent efforts to secure deposits, the total amount of currency in the Near East Development Bank’s treasury was barely over four million Gold Coins, while the loans granted had soared to over eighteen million.

Having experienced high leverage rates in a previous life, Hudson was able to accept this, but Baron Rudolf, the bank manager, was nearly frightened to tears.

Such a massive financial leverage meant that if anything went wrong, people might not be able to do much about Hudson, but the bank manager himself would certainly meet an ugly demise.

Being able to retain so much cash depended not only on leveraging but also on issuing Gold Tickets.

Under the cash shortage crisis, Hudson, with the Near East Development Bank’s fixed-term Gold Tickets, continually shopped in the Southeastern Province.

While the nobles had no love for Gold Tickets, compared to bartering goods, this method was much more convenient.

Coupled with Hudson’s credibility as a guarantee, everyone reluctantly accepted them.

After buying, there was selling.

By delivering goods to those in need, after a round of efforts, a large amount of Gold Tickets flowed back into Hudson’s hands.

Hudson didn’t price gouge; the earnings were all hard-earned money, with some goods even seeing losses due to unsatisfactory sales.

After laboriously dealing for over two months with transactions amounting to millions, the final profit was nothing more than a pile of goods stuck in hand.

Luckily, the Gold Tickets used were self-printed, otherwise considering the capital cost, this would be a disastrously unprofitable trade.

Purely from a profit perspective, this operation was akin to performing charity.

The sole benefit was that it established the reputation of Gold Tickets, letting the nobles of the Southeastern Province know that the Gold Tickets from the Near East Development Bank could be used for transactions.

Unfortunately, Hudson’s limited personnel meant that the promotional efforts were confined to the Southeastern Province; otherwise, just this maneuver could have doubled the valuation of the Near East Development Bank.

While common people didn’t grasp the significance of Gold Tickets, those who had conducted similar operations in major business associations were very aware of the enormous profits hidden.

The inability to expand further was primarily due to strong external opposition.

Conservative nobles simply did not believe that a piece of paper could replace money.

Even with a powerful figure like Hudson vouching, it was only enough to make the local nobles somewhat skeptical, let alone to expand outward.

Taking the first step is always the hardest.

After Hudson’s relentless efforts, Gold Tickets from the Near East Development Bank finally gained some renown.

Nationwide promotion remained a significant challenge, but its recognition had already been established in the Southeastern Province and the Near East Region.

Armed with an impressive performance report, the Near East Development Bank held its second funding meeting once again at the Snow Moon Lake.

Unlike the previous business representatives, the attendees this time were of much greater significance.

Either they were core descendants of major nobles or heads of large business congregations, clearly demonstrating the high importance everyone placed on this meeting.

As a bank manager, Rudolf formally presented the accomplishments of the Near East Development Bank.

Despite lacking in persuasive power, the convincing data could not be faked.

From the incredulous expressions of the investors, Hudson knew that today’s fundraising meeting was largely successful.

…

“Baron Rudolf, the Near East Development Bank has indeed developed impressively, but you are not doing well in terms of risk control.

Looking at the report data, a third of your loan customers are in the Near East Region.

The risks associated with these transactions are too high; in the event of an Orc invasion, you could potentially face total losses.

Has the management considered retracting, or even abandoning operations in the Near East Region, to focus on developing other areas of the Northern Continent and thereby improve the bank’s risk resistance?”

The question from the man in the purple suit left Rudolf momentarily stunned before he responded,

“Viscount Laurent, that’s not how the accounts are calculated!

Purely from an economic standpoint, issuing loans in the Near East Region indeed constitutes a high-risk business, but this risk is not uncontrollable.

In fact, we expanded our operations in the Near East Region after the outbreak of the Orc civil war.

Even if the threat from the Orcs still exists, that is a concern for the future, and for at least a few years, there will not be significant risks in the Near East Region.

Besides the risks of issuing loans, all our other operations in the Near East Region are making profits.

Everyone is aware of the Near East’s unique situation, leading to particularly developed commercial trade there, often involving large bulk commodity transactions.

Currently, over ninety percent of the bulk commodity transactions in the Near East Region use our bank’s issued Gold Tickets, and merchants are also accustomed to depositing their cash in the bank.

Just these operations alone generate hundreds of thousands of Gold Coins in profits annually.

The loans issued also settle interest monthly.

When considering all operations together, as long as the Near East Region remains stable for five years, we will recover all our investments.

Even if the subsequent loans all turn bad, we won’t suffer losses.

Given the situation with the Orc Empire, no one expects them to initiate full-scale war within the short span of five years, right?”