Chapter 600: Strategy for building a financial empire

The reason is the extra word 'royal'!

The Royal Bank of Scotland has two unparalleled advantages because of this word.

The first is the royal charter, which is a historical legacy that has never been revoked. The royal charter was issued in 1727, when it was first established, by King George I, who ruled the German region of Hanover and the British monarchy. This is the only privilege in the entire British banking industry, and even the Bank of England does not have this honour.

Why is it now the Windsor dynasty, and why has this sole royal charter not been revoked?

That's because the Windsors are descended from the House of Hanover. By the time of George V, World War I had broken out, and Britain was at war with Germany. The British royal family and the German royal family were cousins, and the British royal family bore a German surname, which made the British people unhappy. To appease the people, an Order in Council was issued on 17 July 1917, announcing that the name of the British royal family and the private surname of the royal family's paternal descendants would be changed to Windsor.

The royal family is still there, just with a different name. Naturally, this royal charter granted by George I will not be revoked.

This royal charter, to put it bluntly, is a special business license granted by the royal family, and the royal family charges a certain fee.

What the Royal Bank of Scotland has obtained is the right to operate using the name of state institutions and the royal family, using the credibility of the state and the royal family.

For example, in the eyes of the people of Scotland, the Royal Bank of Scotland, which bears the name of the royal family, is no worse than the Bank of England, which has the substance of the Bank of England, and its reputation is even much higher.

This is a private enterprise that is more like a state-owned enterprise than a state-owned enterprise. The words 'royal charter' are like the Chinese characters 'Huaxia' for mainland state-owned enterprises. Private enterprises simply cannot use these two characters, and registration of companies is simply not allowed.

Think about it: there are so many companies with the Chinese characters for 'China' at the beginning, but in the UK, the bank with the royal two characters is the only one of its kind, and it is of even higher value!

The Royal Charter is an extremely important factor in the Royal Bank of Scotland's ability to become the number one bank in Scotland despite having a higher cost ratio than the Bank of Scotland.

Although the Royal Bank of Scotland has not yet expanded beyond Scotland, the word 'royal' gives it a huge advantage in expanding beyond the UK and into Europe. It naturally gives the public a certain amount of confidence, which is why the Royal Bank of Scotland will become the second largest bank in Europe in the future.

In addition to this advantage, the second advantage of the Royal Bank of Scotland is that it has the right to design and issue its own pound sterling. To put it simply, it has the right to issue pound sterling banknotes!

Although it is not very large, it is still there!

It is absolutely impossible for a private bank to have the right to issue banknotes that only the central bank, the Bank of England, has in China, but this is a fact in the UK.

There are three banks in the UK that have the right to issue sterling banknotes. Apart from the Bank of England, which is the central bank, and the Royal Bank of Scotland, the third is also a bank in Scotland, but it is a small and unknown bank – the Clydesdale Bank of Scotland.

Although this small bank has the right to issue sterling banknotes, its power is too small, and it can only issue small denominations. Moreover, the Clydesdale Bank of Scotland is only a small regional bank, and Xia Yu does not consider it for the time being.

Although the Bank of England and the Royal Bank of Scotland both have the right to issue pounds, there are also differences.

Pounds issued by the Bank of England are valid throughout the United Kingdom and bear the head of Elizabeth II.

However, pounds issued by the Royal Bank of Scotland in theory can only enjoy the status of legal tender in Scotland.

But over the past two hundred years, they have actually been able to circulate throughout the United Kingdom. When everyone recognises the value of their pounds, the paper is naturally valid, and even the law cannot stop the national consensus.

Unlike the pound sterling issued by the Bank of England, the pound sterling issued by the Royal Bank of Scotland has a portrait of Elizabeth I on it. Although they are the same person, Elizabeth I, who ruled England at the time, did not rule Scotland due to historical reasons. It was Elizabeth II who ruled Scotland, so even though they are the same person, they are referred to differently in the history books of England and Scotland, and of course the banknotes are different.

Of course, because the pound sterling issued by the Royal Bank of Scotland can now be circulated throughout the UK, it doesn't matter which portrait is printed.

The Royal Bank of Scotland, a Scottish bank, has gone public, and this is Xia Yu's opportunity.

He is a native of Xiangjiang, which has not yet been returned at this time. In terms of household registration, he naturally belongs to British nationality, and is legally eligible to acquire the Royal Bank of Scotland.

And in order to reduce resistance, he will not shout that he hates the world knowing that he is going to acquire the Royal Bank of Scotland. He will also quietly acquire it, hiding himself under the water, and the truth is that he has actually obtained benefits.

Think about it in later generations. After the return of Hong Kong, the power to issue Hong Kong currency is in the hands of HSBC, Standard Chartered Bank and Bank of China (Hong Kong), and it is not unified. This is a disgrace. In his previous life, he was also indignant after learning this fact.

Now that there is this opportunity, Xia Yu naturally will not let it go. If a Chinese person like him holds one of the powers to issue British pounds, just think about it, it's cool. The point is that it is operable and not just a pipe dream.

These three target banks have become directors of HSBC Holdings after taking a stake in the company, so they have a certain degree of influence in the UK.

If Xia Yu later acquires Standard Chartered Bank and Royal Bank of Scotland, the two will complement each other, and Xia Yu's financial empire will cover the UK, Africa, Asia, Latin America and Oceania.

At that time, as long as he makes the Scottish bank a major British bank and breaks into Europe, and then finds a foothold in the United States, acquires or cultivates a heavyweight bank, Xia Yu will be able to truly become a world-class financial tycoon. Although he will not be one of the world's top players, he will have entered the world stage, won't he?

With the foundation of a world-class bank, a large amount of capital injected, and continuous mergers and acquisitions to grow, it will be very simple.

With a world-class bank, his Jiuding consortium will also be able to break free from the shackles of a regional consortium, and use this to break out of Hong Kong and even Asia, and be qualified to compete with major European and American consortia.

Ambitious ideals and a brilliant future all come from every step of the way, and the most crucial thing now is to realise his vision.

In the president's office of Guangming Fund, Xia Yu looked at George Berkeley, who had lifted his head in shock, and said indifferently, 'George, you don't have to worry about funding. Are you sure you can execute this plan?'

George Berkeley was at a loss for words. While he was overwhelmed by the magnitude of his boss's strategy, he also felt a heavy pressure in his heart.

Fortunately, his boss told him not to worry about funding, otherwise he would definitely be overwhelmed.

He took a deep breath, nodded solemnly, and said, 'Boss, to be honest, I can't guarantee anything until it's implemented, but I will do my best to implement your great plan.'

'I need enough time.'

Xia Yu gave him an appreciative look and said encouragingly, 'I will give you enough time. It must be completed within two years. If there are any difficulties or unexpected circumstances, you must report to me immediately, and I will give you enough support!'

Giving George Berkeley two years was also the buffer period Xia Yu gave himself. Now, with his influence and financial resources, he does not have enough capital to acquire two banks at the same time and allow them to develop rapidly.

However, he is confident that in another year or two, his wealth will skyrocket. By then, he will be in an even higher position, with even more influence and even more capital. It will be even easier to make the acquisition.

But there is no need to let George Berkeley know about this, so as to avoid him thinking too much and wavering in his beliefs.

Hearing that he has two years, George Berkeley let out a sigh of relief, his face beaming with joy. He said gratefully, 'Thank you, boss. I won't let you down.'

'Mm!'

Xia Yu nodded with a smile.

'By the way, I have another task for you recently. I am interested in the Hongkong Land Group, but I do not get along well with the Keswick family. Now someone in the Keswick family wants to withdraw and return to the UK, so you will step in and try to buy the Keswick family's stake in Hongkong Land for me.'

'Here are the details of the Keswick family members and the number of shares they hold.'

'Acquire it as soon as possible, and temporarily rank it first in the order of work.'

Saying this, Xia Yu took out a thin document from the drawer and handed it to George Berkeley.

George Berkeley took it and solemnly replied, 'Understood, boss, I will execute it immediately.'

'Well! Do you have any questions?'

Xia Yu asked.

George Berkeley shook his head, 'Not for the time being. If I encounter problems along the way, I will report to you.'

'Good!'

'Then you go ahead!'

'See you later, boss!'

As George Berkeley exited and slowly closed the office door, Xia Yu stood up, stretched comfortably, and a hint of anticipation appeared at the corner of his mouth.