Zhao Zhen looked at Xu Ping half-believingly and asked, "What is living money? Is there still a dead money?"

"Of course there are deaths. For example, some wealthy families bury their money in a cellar and don't move for a few years or even decades, so the money will die. Living money is money that can keep earning interest."

"It's a pity that although you can earn interest, the interest is not much. The annual profit is 20% and I think it's not enough for the palace to use. As you said, it's even lower. Where can I make up for this deficit?"

Xu Ping said: "Banks use capital to generate interest, but it is not the algorithm of Your Majesty. If you calculate this way, it will become a rich man who lends money to the people. How can we do that? We are convenient for the people, not to expose them."

How could Zhao Zhen believe? Even Xu Ping was so mean that he was not very good at using profits and profits. The government and the people's annual profits could not exceed 30%, and generally two are accurate. This rule is written by the law, and Zhao Zhen did not want to make an exception.

Seeing Zhao Zhen’s suspicious look, Xu Ping said: “Your Majesty is here, listen to me to tell you slowly. There are quite twists and turns in the matter, and you must analyze them one by one to make it clear. Your Majesty must be patient, how can you be anxious about making money?”

After sitting down again, Xu Ping said: "Your Majesty, the money from banks is different from the money from the private wealthy people. During the day, I once said that when the people's money is deposited into the bank, the bank will pay a portion of it and deposit it in the money prison. Do you still remember it?"

Zhao Zhen thought for a while before nodding, "It seems that he said this. No, I just felt that the bank's capital was too small. If you ask for this, wouldn't the capital be even less?"

"Your Majesty listened to me first. Don't worry. We understand how we put the money into the bank, how we lend it, and how we take it back. The money was produced and the bank used its capital to exchange it for money, and of course it also borrowed part of it. This is how the money entered the bank. At this time, the bank had the capital, right?"

Zhao Zhen nodded. Xu Ping could explain this clearly, and he could understand it.

Xu Ping said again: "With the capital, you can lend. We have been saying that banks only lend to companies, and people do not lend. So when a company borrows loans from banks, where does this money go?"

"Of course it was spent! If you don't spend money, what will the company do if you borrow money from the bank?"

"Your Majesty, don't worry, although it is a spending money, there are still some details on how to spend it. After the company borrows money, it will be used to operate it, and the money will have several places to go. One is to pay the labor money to hire, and the money will have to be really spent. There are also the rent of the premises, the company saves some cash for emergencies, and various daily necessities. But the real big deal is to buy raw materials. If the company wants to make items, it must use raw materials. Where can the raw materials be bought? Most of the time, it is bought from other companies. This kind of bulk payment transaction is completed in the bank."

Zhao Zhen vaguely touched a little trick and nodded: "I know, this is what Jingxi Road Money House does."

"Yes, this is how the money shop on Jingxi Road did it. Why did it do it at that time? Because Xijing City built some farms, and later there was cotton cloth. The private trade increased dramatically, but the cash was not enough. Many people think that the money shop solved the problem of insufficient cash by forcing the public to deposit copper coins. In fact, it is not. How much money can there be?"

Speaking of this, Xu Ping felt a little guilty for no reason and couldn't help but clear his throat: "In fact, the most important way to solve the lack of cash is to allow large-scale transactions to be delivered at the bank. The place where the most money is used is these large-scale transactions. Once the transaction is limited to the bank's delivery, no matter how much transactions are, they will only be transferred on the bank's account. The money is actually still in the bank's bank, so there will be no shortage of money."

Zhao Zhen's eyes slowly lit up and he said to Xu Ping: "You mean, the bank will handle this as well?"

"Of course we have to do this! Doing this is beneficial to the people, the banks, and the companies are more beneficial. How much effort does it save! Money is used to buy goods. As long as the goods are bought, what is the point of moving the money around? The bank is opened to do this to facilitate the people and private transactions! Most transactions between companies only need to be accounted for in the bank, and there is no need to withdraw money really."

In Xu Ping's previous life, banks liked to lend to large companies, and the bigger the company, the better. Needless to say, it is not easy for a small company to borrow from a bank. Even if they are willing to pay more interest, the bank doesn't want to pay. This is not only a matter of collection risks, but also involves the capital occupation of banks. Loans for large companies are just a account on the bank. For banks, they change the name of the customer and the money is still there, and they can continue to lend to the next customer. Small companies often withdraw money and take up the funds after the loan. How could the bank be willing?

For personal loans, mortgage loans are easy to borrow, and the interest rate is still low. The same is true, and the money is still in the hands of the bank.

As long as the money is not out of the bank, the more money the better. For the bank, the capital is still the same, and the interest received is not known how many times the amount. Private lending has an annual profit of 20% but the money is really out, and the lender has no hands. Banks are different. When the money is out, it is just a depositor who has changed his name, which has no impact on the bank's lending ability. The annual profit is 10% higher than the income obtained by private lending. Of course, if this is superimposed, the risk of collection will also be increased in geometric ranges. But for Xu Ping, as long as he lends it to the company, the account is controlled by the official, and the loan risk has been minimized. There is basically no need to consider that issue.

By setting up a money shop, setting various rules, and trying to keep money from paying for the money shop, I have been preparing for this time.

Zhao Zhen's face completely relaxed, and he even smiled. He just looked at Xu Ping, but he felt a strange feeling in his heart.

Since the new Jinshi in Chongzheng Hall turned a name for the first time, Zhao Zhen felt that this man was quite honest and honest, and he should be a reliable person. But today, he looked at him quite a bit like a profiteer? In addition to the wealthy officials in Kaifeng Prefecture, his family is really farmed by farming. The bank in Xu Ping's mouth is faster than the money produced by money.

Xu Ping also said: "In fact, for banks, these are only part of them, and the capital will be put even bigger."

"Ah" Zhao Zhen was thinking about his thoughts, but when he heard Xu Ping say this, he couldn't help but feel heart trembling.

Xu Ping was focused and carefully analyzed to Zhao Zhen: "Your Majesty, what we just said was that after the company borrowed money, it actually didn't pay the money from the bank. In fact, the money from the bank can be used."

What else can Zhao Zhen say? He felt that with mountains of gold and silver in front of him, he would never spend all his money.

Xu Ping continued: "After the company makes a loan, he took the money out of the bank, mobilized the hired workers, bought things from people, and then where did the money go? In most cases, people have money in their hands, only part of it is spent, and the rest must be saved, right? Where to deposit it? There is interest in depositing it in the bank, of course it is deposited in the bank. The money goes to the bank again, and when it comes to the bank, you can issue a loan, and then it will continue to survive. As long as the bank keeps the capital for others to withdraw deposits, it is actually not much, which is what I said before. When the bank collects the people's deposits, it must take out part of it and deposit it in the money prison. This is the reserve fund to prevent people from withdrawing deposits. Although the money in the bank account is issued as a loan, millions of guan, and millions of guan, it is difficult to borrow it as tens of millions of guan?"

In the words of Xu Ping in his previous life, banks have money multipliers to lend, of course, it would not be as simple as Xu Ping's words, but the truth is the same. There are only millions of currencies in banks and tens of millions of loans. It is not a big deal to strictly control risks and strictly restrict the flow of currency from banks. Only by lending loans can the bank make a lot of money? Zhao Zhen felt that the capital in his warehouse was too small, and Xu Ping felt that there was too much. Now the Kaifeng Prefecture area cannot withstand the impact of such a huge amount of funds.

This not only uses the bank to earn interest rate spreads on deposits and loans, but also optimizes the allocation of funds in society, so that money can truly go where it is needed and generate more wealth. Xu Ping really thinks that this is a great thing that benefits the country and the people, but in fact it is indeed a good thing that benefits the country and the people. When a company is operating, funds are a big problem, and banks can solve this big problem.

Is there any risk in doing this? Of course there is, where is the good thing in the world to make money by lying down! However, Xu Ping has done his best to limit the risks to the minimum. The regulations are so strict that if there are still people who can cause trouble, they will be really trying to die. If they want to die, they can only let them die. Who can do this?

Having said that, Zhao Zhen finally felt completely relieved. It turned out that this is how the bank was opened, which is very different from private lending. It can earn several cents of profits for a lifetime, and the interest rate is still low. In the future, I will wait to collect the money while I am lying down.

The more I thought about it, the more I felt comfortable. Zhao Zhen then remembered that after Xu Ping asked the Zuozangku of the Sansi to set up a bank, he also left a special place for the inner warehouse. This was a good thing to think about himself, and he did not disappoint his trust. Let Xu Ping be the envoy of the Sansi, the decision was right. If he changed his minister, he might not have counted the inner warehouse. It would be nice not to take the opportunity to cheat him once.

He was happy, and Zhao Zhen wanted to drink, so he immediately ordered the small yellow gate standing there to get the wine.

Xu Ping hurriedly said: "In Tianzhang Pavilion, where the ancestors' gods are, how dare you drink? Your Majesty has the heart and is grateful for it."

This is not an ordinary place, it is a place where Zhenzong's imperial pen and calligraphy are placed, and there is also a portrait of Taizu Taizong. I summoned the ministers here to appear solemn and drink it would be great! Not to mention Zhao Zhen himself, if this matter is spread, Xu Ping would have to be scolded to death by the court officials, and he should not think about doing the newly-appointed official. (To be continued...)
Chapter completed!