What is the origin of banks?

The word bank comes from the Italian Banco, which means bench. Early bankers used it in market transactions. English is translated into bank, which means a cabinet for storing money. Early bankers were called "people sitting on long benches".

The emergence and development of banks are related to the development of monetary commodity economy, and the currency exchange industry in pre-capitalist society is the basis for the formation of banking industry. At first, the money exchange industry only operated the money exchange business, but later it kept money on behalf of businessmen, received and paid cash, and dealt with sudden embarrassment. In this way, exchange merchants gradually gathered a large amount of monetary funds. When money changers engage in lending business, money changers become banks. The earliest bank in modern times was the Bank of Venice, and 1580 was established in Italy. Since then, banks have been established in Milan/KOOC-0/593, Amsterdam/KOOC-0/609, Nuremberg/KOOC-0/62/KOOC-0/Hamburg/KOOC-0/629 and other cities. At that time, these banks mainly lent money to the government, which was usury, and could not meet the requirements of capitalist industrial and commercial development. The earliest joint-stock bank established in accordance with the principles of capitalism was the Bank of England established in 1694. By the end of 18 and the beginning of 19, large-scale joint-stock banks were established one after another and became the main form of capitalist banks. With the further development of credit economy and the continuous strengthening of state intervention in social and economic life, the objective requirement of establishing a central bank has emerged. 1844 The restructured Bank of England can be regarded as the originator of the central bank of capitalist countries. By the second half of the19th century, western countries had set up central banks. Early banks mainly handled industrial and commercial enterprise deposits, short-term mortgage loans and discounts. At present, the business of banks in western countries has expanded to securities investment, gold trading, medium and long-term loans, leasing, trust, insurance, consulting, information services and computer services.

The bank structure in modern western countries is very complicated, and there are many forms of organization, including: government banks, political and business joint banks and private banks; Joint-stock banks and wholly-owned banks; National banks and local banks; Universal banks and specialized banks; Enterprise banks, mutual cooperative banks, etc. According to their functions, they can be divided into central banks, commercial banks, investment banks, savings banks and other professional credit institutions. They constitute a modern banking system with the central bank as the center, joint-stock commercial banks as the main body and all kinds of banks coexisting.

Since the 20th century, with the rapid development of international trade and international finance, a number of worldwide or regional banking organizations have been established around the world, such as the Bank for International Settlements established by 1930, the International Bank for Reconstruction and Development (World Bank) established by 1945, the International Finance Corporation established by 1956 and the International Finance Corporation established by 1964. 2008-01-0313: 04: 33 from: Zuo Si (different stories) We have heard different versions about the origin of banks. In fact, there are mainly two versions, one is the goldsmith version and the other is the money changer version. According to Goldsmith's version, the emergence of banks began with the function of saving. Because goldsmiths store gold in the process of making gold products, there are good safety measures. Some people who own gold will store it in the goldsmith's shop and pay a certain safekeeping fee for storage safety. After a long time, the goldsmith found that some gold in his place was unchanged, that is, the theory of bus invariance written by Professor Huang Da in his early years, so the goldsmith lent out these "idle" gold to earn interest income. In this way, early banks originated from gold shops, and early bankers originated from goldsmiths. This assumption makes sense, but it has never been verified by history, at least we haven't seen it yet. Another money changer's statement doesn't sound as reasonable as a goldsmith's background, but it is well documented. One is "Management of Commercial Banks" written by Peter S.ROSE in the United States, and the other is our bank number in Shanxi. The draft bank is the originator of the banking industry in China and the earliest banker in China (if it can be counted in this way). At the beginning of the last century, due to the independence of the provinces, Shanxi Bank was interrupted and fell into crisis. The Banking Association petitioned collectively in Beijing. At that time, when the Bank of Communications was established and developed, the petitioners were forced to stay by the government, which was also the earliest group of modern bankers in China. In fact, developing from exchange means developing from trade, and Shanxi is in the middle of trade between Jiangnan and the north. I think, no matter what the origin of banks is, few people can think that banks will develop into such a huge, influential, exquisite and risky industry today. We say that banking or finance is an industry, so what is its industrial chain? What is the position of commercial banks in this industrial chain? The best way to develop this industrial chain is to start with banking business and historical development.

If the goldsmith's origin theory is based on the bank's storage function and the exchange theory is based on the bank's exchange function, then in any case, deposits, loans and remittances are the basic businesses of banks. Of course, this is the basic business of commercial banks, but not all banks. When we look at the bank's business, there are three main blocks: debt business, asset business and intermediary business. The reason why I put the liability business in the first place and the asset business in the second place is because for banks, without the source of funds, there is no use for funds. Of course, modern banks have begun to advocate a new business structure with intermediary business as the core, but I always believe that the traditional deposit and loan business is the foundation of bank development, and any emerging business is an extension and innovation on this basis.

The main body of debt business is deposits, including savings deposits, time deposits, large deposit certificates, call deposits, deposits linked to the money market and so on; The main body of asset business is loans, including small loans, housing mortgage loans, medium and long-term loans, project financing, enterprise restructuring loans, syndicated loans and so on. The scope of intermediary business is wider, covering almost all non-asset and liability businesses, including not only existing international business, capital business, guarantee business and remittance settlement business, but also many new businesses "packaged" on the basis of traditional business. Looking back now, it is on the basis of these traditional businesses of commercial banks that other financial institutions can develop and gradually form a financial industrial chain.

For example, from savings offices to savings banks, postal savings is the ultimate development. Its main function is saving, and the funds are deposited in the central bank. There are also housing savings banks run by Europeans. This kind of bank requires everyone who wants to borrow money to buy a house to deposit a sum of money in the bank first, and it is deposited monthly. When you save a certain amount of money for a certain period of time, the bank will lend you the money you need to buy a house. This basic practice of the Housing Savings Bank is also known as the "queuing principle". It embodies an ancient European "socialist thought"-solving the housing loan problem through mutual assistance and queuing. The main feature of housing savings bank is savings. The loan here no longer has its original meaning, but uses its own money to buy a house, so some people paint it as "utopian socialism".

As far as loans are concerned, many banks that mainly lend to small customers have developed on the basis of small loans. For example, VOLKSBANK in Germany and the Small and Medium Credit Association in the United States. There is also a very mature business, mortgage, or mortgage. On this basis, there are also specialized mortgage banks. The staff of these banks are quite professional in the real estate field, and many of them are real estate agents. For example, in Hong Kong, there are some financial companies that specialize in mortgage loans. They basically don't look at your source of income, only at your real estate and real estate. Their funds mainly come from the proceeds paid to the bank after the assets are packaged. Developing on the basis of this business is what we now call "asset securitization". The problem it wants to solve is the "lightweight" of assets, that is, turning long-term assets into cash, thus improving the liquidity of assets.

Look at medium and long-term loans and project financing of commercial banks. On the basis of this business, banks with medium and long-term loans have emerged, the most typical of which is the European Bank for Reconstruction, which was established for reconstruction after World War II, mainly to rebuild damaged infrastructure, and its source of funds mainly depends on issuing medium and long-term bonds. Our national development bank is based on the European Bank for Reconstruction, but it is stale when it is run, because we are not legally bound, as can be seen from the European Bank for Reconstruction Law. There is also a large financial institution that started with medium and long-term loans, GE-CAPITAL in the United States. This is a corporate finance company that mainly provides leasing, large-scale equipment loans and medium and long-term loans. Don't underestimate it. The debt it issues in the market is the highest level, and it is also the dream of many financial people in China, especially some large enterprises.

As far as corporate restructuring loans are concerned, debts may be issued in restructuring loans, including bridge loan and syndicated loans, also known as syndicated loans. On this basis, the investment bank is developed, which is the development and specialization of corporate banking business of commercial banks. Even today, many investment banks are still inseparable from commercial banks. For example, in bridge loan, this is a business that often happens when enterprises buy listed companies in the capital market. For example, at the beginning of a high-profile Shanghai real estate developer's loan in Hong Kong the year before last, bridge loan was heated up, thinking that a banker had an improper transaction with the real estate developer in bridge loan. Hong Kong Phoenix Satellite TV also specially invited several people in the industry in Hong Kong to discuss. I looked at it in detail and called the people on Phoenix TV. I told them that you made a mistake. As far as this loan is concerned, as long as the legal documents are ready, it will not be done well. Why? Do you think it is risky for banks to lend billions of dollars to real estate developers to buy a listed company with more cash? This is a bridging loan. When the company is acquired, the loan can be repaid. This is a typical investment banking business, but it cannot be separated from commercial banks. In addition, financial consulting, consulting, analysis and other businesses are also specifically divided on the basis of corporate banking. If you give a company credit, you can't help but know all kinds of information about the company. On this basis, derivative products will appear, which is the embryonic form of consulting business and the main business of investment banks.

In addition, based on the international business of commercial banks, banks mainly engaged in international trade financing have emerged, typically the Export-Import Bank. There are also banks whose main business is foreign exchange trading; There are also guarantee companies developed on the basis of bank guarantee business. In fact, the bank's guarantee business is related to the debt and asset business. For example, the premise of the guarantee may be that you have a corresponding deposit in our bank, or it may be that the guarantee is a loan to be issued by our bank. There is also the settlement business of banks, including the four major clearing banks at home and abroad and the United Kingdom, which is developed on the basis of this function.

The central bank is no exception, it is also developed from commercial banks. A big bank like China Industrial and Commercial Bank can become a central bank with a little transformation and development, and so can the Bank of England. 1833, Congress passed a bill stipulating that bank notes issued by the Bank of England are legal tender, so the Bank of England became the central bank. However, it is not so easy to become a settlement center. Need a certain scale and network, ICBC is enough. But look at Hong Kong. Three banks issue money, but the settlement center has changed. The pound is in HSBC, and the Hong Kong dollar is in HSBC, but the RMB settlement is in the Bank of China. As for the central bank's interest rate policy and monetary policy, they are all derivatives of the currency issuance and settlement center. Therefore, the central bank is also developed from commercial banks. For large commercial banks, it is only one step away from the central bank.

Above, we discussed the development and evolution of banking business from the perspective of financial industry chain. From this process, we can see that:

1. Commercial banks are the most primitive, traditional and basic form in the financial industry, the originator of the banking industry chain and the core of the financial industry chain.

2. All non-commercial banking institutions in the financial industry are extensions and specialization of one or more functions or businesses of commercial banks.

3. Theoretically, the business of commercial banks can cover the whole financial industry, but no other non-commercial banking institutions can cover commercial banks. The reason is that commercial banks have a fundamental small weapon-checking account, which is the exclusive power of commercial banks.

The second question: retail banks or customer segmentation of commercial banks from the perspective of commercial banks.

Commercial banks in the world, regardless of scale or system, are divided into four business sectors: retail banking, corporate banking, treasury department (called treasurer department overseas) and logistics department. Retail banks and corporate banks are familiar to everyone, and I will talk about them in detail later. Foreign banks have a treasury department, which is similar to that of domestic banks, but there are some differences. My understanding is that the national treasury has two functions. The first is to ensure the liquidity of banks, which is what we call position management. There is a surplus or shortage of bank funds every day, which requires the national treasury to balance, and it relies on a mature capital market. The second is to make profits while satisfying the liquidity of banks. This requires the treasury to use domestic and foreign capital markets, bond markets and foreign exchange markets for trading operations at the same time to ensure the balance of bank positions and obtain profits. There are also derivatives that we often mention, mainly in this sector. What is a derivative? Tell a primitive form, and everyone will understand. For example, Deutsche Bank is the boss in Germany, and the cost of obtaining mark funds in the German market is 3.5%, while the capital cost of Citibank in the German market is 3.55%; On the other hand, the financing cost of Citibank in new york dollar market is lower than that of Deutsche Bank, so there is interest rate swap between the two banks. This is the original form of the derivative. Some people say that this is a big foreign bank, and we can't reach this level. Actually, it is not. As long as China's capital account is fully open, banks will immediately enter the international market and enjoy global prosperity. BackOffice is the support department or guarantee department we are talking about, such as computer department, legal department, administrative department, office, and a considerable part of our international department's technical work, such as opening letters of credit. Chief Operating Officer The chief operating officer (COO) is usually called the head of this department.

Now look back at retail banks and corporate banks. The first part, we look at commercial banks from the perspective of banking business; Now talking about retail banks, we should start with the customer division of banks. Why choose such an angle? Because if you study commercial banks, you will find that the organizational structure and business division of banks are customer-oriented, that is, demand-oriented or market-oriented.

First of all, look at the massive business, which is the mass business. There are deposits, credit cards, transfers, collection and payment, etc. ......

Then there are middle-level customers. In addition to the needs of mass customers, the needs of middle-level customers have some characteristics, such as buying a house-mortgage business, small loans-decoration, tourism, investment-stocks, bonds, funds and insurance, which is a growing group in China.

Then the top customers. Before the 1980s, these customers were not impressive. Since the beginning of this century, there have been more and more high-end customers, and many big banks have set up special departments for these customers. The reason is that, in addition to the needs of the public and middle-level customers, these customers also have a new demand focus, that is, tax planning, inheritance arrangements and the preservation and appreciation of wealth. It can be said that the market development and competition for these customers has become an important task for the world's big banks. There is a simple reason. With the sustained economic prosperity in the 20th century, these customers have been growing, and the income from serving these people is the fastest growing part of bank profits. The service for this group of customers has gone beyond the original concept of retail banks, and more embodies all the wisdom, resources and core competitiveness of a bank.

Finally, a professional customer base. Including lawyers, accountants, independent doctors, headhunting companies, consulting companies, etc. These professionals are increasingly prominent in modern society and become a new professional group.

We can classify these four customers as customers of retail banks, and then look at what businesses the corporate banks have.

The first is loans to small businesses. In the west, it is regarded as a loan to an unlimited liability company. Then there is the business for medium-sized enterprises. In Hong Kong, banks usually divide the departments that provide such services into trading departments, and Citibank Asia Headquarters also divides a department from the corporate banking department to develop business for these enterprises. Finally, the corporate business of large enterprises. Because there are corporate mergers and syndicated loans in the business of large enterprises, some banks regard the daily business of large enterprises as corporate banking business and separate the reorganization and other businesses.

As far as business division is concerned, the development of banking business chain is like the evolution of biological cells. From single cell to double cell and then to multi-cell, it will inevitably have mutations. In the development of banking business, this mutation is mainly manifested in the service to middle and high-level customers, which is also the most potential business in the development of the whole bank. How to develop and cultivate this part of business depends not only on the retail banking department, but also on the coordination and cooperation of all banking departments, including the increasingly perfect corporate banking department, treasury department and strong back-office support. This is the last question I want to talk about-how to develop our retail banks.