"Some trouble..."
The Head Office Director of Lehmer National Bank was organizing a meeting with the bank's upper and middle management. Ever since the President of Lehmar had expressed his dissatisfaction to the Federal Government, a great deal of foreign capital had begun fleeing Lehmer frantically.
However, the effects caused by this flight of foreign capital had yet to become apparent!
In the Head Office Director's eyes, Lehmer was a loosely structured country. Once foreign capital fled, it would be a disaster for the country's Financial Market.
Ordinary people might not understand this. Why would foreign capital fleeing cause a disaster for Lehmer's domestic financial sector?
In fact, it was not a particularly complicated matter. Bank loans alone were enough to cause a headache!
While foreign capital conducted commercial activities in Lehmer, all its funds were stored in Lehmer National Bank.
National Bank possessed temporary usage rights over this money until it was withdrawn or transferred elsewhere.
During that period, how the money was used was entirely up to the bank!
Of course, to ensure that banks did not overuse the money and cause some unpredictable trouble, every country had a bottom line.
In a region like Lehmer, where finance was not especially developed and most investment went into industry, control over funds was somewhat looser.
At Lehmer National Bank, total loans could not exceed eighty-two percent of total deposits. Compared with the thirty-percent limit in the Federation, Lehmer was practically like having no restrictions at all! At most, it would leave only eighteen percent of its total deposits to guard against a possible bank run.
A bank run had not happened, but foreign capital transfers had!
Once foreign capital was transferred out, the banks' cash flow nearly dried up. It could not be helped. No one had expected the