If the bank really fails, will it be worth up to 500,000 yuan?

There are more financial products on the market now, but if the income is high, the risk is also relatively large. In general, it is safer to deposit in the bank. Many people believe that banks are the safest and will never fail.

Moreover, if it is stored in the bank, it can also have a certain amount of interest. The higher the deposit amount, the higher the interest rate. However, it is possible for banks to fail, and there are relevant regulations for bank failures.

According to the deposit insurance regulations, the maximum payout is $500,000. Many people are worried, if the bank really fails, will it lose up to 500,000 yuan?

Many people may not know that there has been a precedent of bank failure in China. Moreover, there are depositors who do not use their deposits in the bank, and the myth that the deposit bank is foolproof has also been broken. In 1988, the Hainan Development Bank was declared bankrupt less than three years after its establishment.

It was also the first bank in our country to fail, and the reason for the failure was because the promised high interest rates were not fulfilled. A large number of depositors withdrew their money from the bank, and the subsequent bank stipulated the number of withdrawals, which aggravated the panic of depositors. In the end, it went out of business.

There was also a bank that failed in 2012. A rural credit cooperative in Henan also declared bankruptcy because it was insolvent. It closed down in 2001 and went bankrupt in 2010 because it took a long time.

Depositors can withdraw money from the bank before going bankrupt. The possibility of the failure of small and medium-sized banks is relatively large, and for these banks, the most worrying thing is a run on depositors. Moreover, the state also allows banks to fail, and there will be a maximum compensation of 500,000 yuan.

The part exceeding 500,000 will have to wait until the bank liquidation is over.

There are also 3 cases where the bank does not lose money. The first is when the deposit in the bank is lost, and the deposit in the bank cannot be found at this time. It is difficult for the bank to help you find it, and it is more troublesome.

The second situation is that the wealth management products bought in the future are lost, and the bank's wealth management products are also divided into many kinds. Wealth management products with relatively high returns may also lose their principal. At this time, I can only consider myself unlucky, and I can't blame anyone.

The third situation is that there is a problem with the wealth management products sold by the bank, which often occurs in small and medium-sized banks. Large banks generally have their own wealth management products, and in the event of a problem, they will be responsible for it to the end. Small and medium-sized banks, on the other hand, can only act as intermediaries to sell wealth management products.

At the time of the bank's failure, something went wrong. The bank will ask you to find the issuer and is not responsible for this.

To avoid risk, it's best to keep your money in a big bank. It is also possible to diversify the risk and keep no more than 500,000 deposits in each bank. In this way, even if the bank fails, there will be no loss.

Is it true that a bank failure can pay up to 500,000 yuan? How to compensate for financial management? Three cases tell you the answer.

Not. Generally, less than 500,000 yuan will be paid in full, and more than 500,000 yuan will be paid partially.

No, it won't. If the bank does fail, the depositor's money will be compensated in full. There will be no maximum loss of 500,000.

Under normal circumstances, yes, the maximum compensation can only be 500,000 yuan for one user.

No, because the amount of compensation is different for each bank, depending on the bank.

1. How to compensate for deposits of less than 500,000 yuan in bank bankruptcy.

1. If the bank goes bankrupt and is less than 500,000 yuan, the full compensation will be paid. After the regulator accepts the bankruptcy application, the deposit insurance institution will repay the deposit within 7 working days, and the bank bankruptcy is a small probability event, if the investor has more funds, he can divide the deposit into several banks.

2. Legal basis: Article 5 of the Regulations on Deposit Insurance.

Deposit insurance is subject to a maximum reimbursement limit of RMB 500,000. The People's Bank of China, together with relevant departments, may adjust the maximum repayment limit according to factors such as economic development, changes in deposit structure, and financial risk status, and announce it for implementation after reporting for approval.

If the amount of funds calculated by the principal and interest of all insured deposit accounts of the same depositor in the same insured institution is within the maximum repayment limit, the full amount shall be repaid; The part exceeding the maximum repayment limit shall be compensated from the liquidation property of the insured institution in accordance with the law.

After the deposit insurance** management institution repays the depositor's insured deposit, it obtains the depositor's claims against the insured institution in the same order of repayment within the scope of the repayment amount.

The repayment methods for social insurance ** and housing provident fund deposits shall be separately formulated by the People's Bank of China in conjunction with relevant departments and submitted for approval.

2. What are the conditions for the bankruptcy of a commercial bank?

The conditions for the bankruptcy of a commercial bank are as follows:

1. Commercial banks are unable to pay off their debts when they fall due;

2. Review and approval by the banking regulatory authority;

3. A commercial bank shall be declared bankrupt by the people's court.

Hello, the bank will be compensated for the failure, if it is more than 500,000, it can only be compensated at most 500,000.

How to compensate after a bank fails?

As for how to dispose of the bank after bankruptcy, according to the relevant provisions of China's "Deposit Insurance Conditions", when the deposit plus interest of the personal account is less than 500,000 yuan, the user can get full compensation. When the amount exceeds 500,000 yuan, the excess part needs to be taken over by the bankrupt bank, and only after the liquidation of the assets can the compensation be paid to the depositor according to a certain proportion according to the actual situation.

For every money we deposit in the bank, the bank pays a premium to the deposit insurance**. Once the risk of a deposit product occurs, it is ultimately covered by the deposit insurance**, or the deposit insurance** entrusts other banks to cover the risk. The management institution of China's deposit insurance is a deposit insurance management limited liability company established solely by the central bank with a registered capital of 10 billion yuan.

Deposits are protected by the Deposit Insurance Regulations, and no interest will be paid on structured deposits such as current, fixed and large-denomination certificates of deposit.

Those that are not protected by the deposit system are: 1. Branches of insurance institutions outside China and branches of foreign banks in China; 2. Interbank deposits of financial institutions; 3. Deposits of senior executives in the insured institution; 4. Other deposits that are not guaranteed by the regulations.

In addition, wealth management products are not covered by the Deposit Insurance Regulations. Wealth management products issued by banks can be terminated early and the principal and interest can be liquidated. As for the wealth management products sold on behalf of the depositor, the depositor can directly find the issuer.

As of this time last year, the list of insured financial institutions has reached 4,025, and it can be said that most banks are insured. If the depositor is afraid that the bank is not insured, he can ask the staff to confirm that the bank is insured for re-deposit, otherwise there is no protection under the "Deposit Insurance Regulations".

According to public information, as of the end of 2018, the balance of the deposit insurance ** special account was 100 million yuan, and since the implementation of the system, no expenditure and use have occurred.

It is true that the private bank has collapsed, and the depositor's funds deposited in the bank, as long as they are in the nature of deposits, can enjoy the protection of the "Deposit Insurance Regulations", the maximum repayment limit is 500,000 yuan, and the actual compensation is subject to the principal of the deposit and all the interest generated, and the part of the principal and interest exceeding 500,000 yuan will be compensated from the liquidation property of the insured institution in accordance with the law. At present, whether it is a private bank, a commercial bank, or an Internet bank, all of which are set up in China, are required to take out compulsory deposit insurance, so that depositors' deposits can enjoy protection.

As the country with the largest savings population in the world, China can be called a "big saving country". I believe that for many residents of our country, saving money may have become a part of life. Because in the eyes of most people, banks have always been a safe and secure place.

Putting your money in the bank can not only ensure the safety of funds, but also obtain certain benefits, which can be said to be the best of both worlds, so over the years, many people have put their money here. _

Extended information: 1. Will China's banks be unable to repay the money we have deposited in the bank because of bankruptcy I believe that in the impression of many people, such a thing as bank bankruptcy will only appear in some European and American countries, and the most famous of them may be the bankruptcy of Lehman Brothers, the fourth largest investment bank in the United States. What many people may not know is that there are already 4 banks in our country that have gone bankrupt.

2. As early as 1998, a private bank named Hainan Development Bank had a large number of depositors "run" due to a credit crisis, and there was still no way to save it from the crisis of bankruptcy despite the state appropriation of 3.4 billion yuan, and finally had to declare bankruptcy. The second bank to go bankrupt was a rural credit cooperative in Hebei Province, which had to be declared bankrupt in 2012 due to insolvency, making it the second bank in China to go bankrupt. The third bankrupt bank was Shantou City Commercial Bank, which was ordered by the central bank to suspend business for rectification due to bad debts of up to 4 billion yuan, but has not opened since then.

3. Since then, there has been no news of any bank bankruptcy in our country. Just when everyone thought that China's banking industry had developed maturely and that there would be no more bank bankruptcies, another bank went bankrupt, and this bank was Baoshang Bank. Unlike the above banks, Baoshang Bank is much higher than the three previous bankrupt banks in terms of size and strength, not only ranking 10th among the top 500 banks in Asia, but also having 4.67 million customers after being taken over by the central bank.

However, because the amount of shareholder loans was too large to repay, it finally led to too many bad debts and had no choice but to declare bankruptcy.

The state has regulations and solutions for bank bankruptcy, if the bank goes bankrupt, the customer's money deposited in the bank will be compensated to the customer, but the maximum compensation can only be 500,000 yuan. This means that if the deposit is less than 500,000 yuan, it will be paid in full, and if it exceeds 500,000 yuan, no matter how much, it will only be paid 500,000 yuan. This regulation was issued in 2015.

Extended Materials. The scale of assets and after-tax profits of China's banking industry have increased significantly year by year, and the profits realized by China's banking industry accounted for nearly one-third of the total profits of the global banking industry in 2011. The scale of China's banking industry is developing rapidly, but in the context of accelerating interest rate marketization, intensifying internal and external competition, and declining profit growth, banks and financial institutions must make corresponding strategic adjustments in business structure, resource allocation and regional layout.

With the intensification of competition in the banking industry, banking financial institutions pay more and more attention to the tracking research of the industry development environment and market demand, especially the in-depth study of the banking business development environment and the trend of customer demand. Because of this, a large number of outstanding domestic banking institutions have risen rapidly, gradually forming their own business characteristics and becoming leaders or rookies in the industry.

The profit channels of banks are loans, bank insurance, sales of wealth management products, sales of financial equipment, consumer profits of financial intelligent terminal business, hedging business, bill business, etc.

The profit ratio of most banks in China is: 30% for loans, 10% for banking insurance, 10% for sales of wealth management products, 5% for sales of financial equipment, 30% for financial intelligent terminal business, 5% for hedging business, 10% for bill business, etc.; The profit ratio of foreign banks is: 15% for loans, 15% for bank insurance, 15% for sales of wealth management products, 10% for sales of financial equipment, 35% for consumption profit of financial intelligent terminal business, 5% for hedging business, 5% for bill business, etc.

On February 24, 2016, ** reported: 7 of the 16 listed banks have handed over their report cards for last year, and the general net profit continues to decline. The performance report shows that in 2015, the net profit attributable to shareholders of the parent company of these seven banks totaled 100 million yuan, which means that the seven banks made a net profit of 100 million yuan per day last year.

Although this figure is still among the best in all industries, it is still the trend of the future for profit growth to continue to decline.

The net profit growth rate of 7 banks has declined to varying degrees compared with 2014, and the net profit growth rate of 6 joint-stock banks has fallen to single digits, and the net profit growth rate of China Merchants Bank, Industrial Bank, Huaxia Bank, China CITIC Bank and Shanghai Pudong Development Bank has dropped by more than half. China CITIC Bank's net profit growth rate was the lowest, only. Only Bank of Nanjing, as a city commercial bank, has maintained double-digit performance.

Bank bankruptcy compensation is not only 500,000 yuan for the four major banks, but the maximum amount of compensation for all banks is 500,000 yuan. Article 5 of the Regulations on Deposit Insurance stipulates that deposit insurance shall be subject to a maximum repayment limit of RMB 500,000.

People's Bank of China.

In conjunction with the relevant departments, the maximum repayment limit can be adjusted according to factors such as economic development, changes in deposit structure, and financial risk status, and shall be announced for implementation after approval.

Extended Materials. 1. The bankruptcy of a commercial bank refers to the cessation of business operations, liquidation of creditor's rights, repayment of debts, and loss of civil rights and capacity for civil conduct in accordance with certain procedures.

The process of losing legal personality and thus exiting the market. The bankruptcy of a commercial bank needs to go through the stages of application, acceptance, announcement, reconciliation and rectification, bankruptcy declaration, liquidation, deregistration and deregistration.

2. China's four major banks.

Refers to the state (Ministry of Finance, ** Huijin Company.

Four large state-owned banks under direct control.

Specifically, it includes: Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank (industry, agriculture, China, construction), also known as the first four major banks, which represent China's most abundant financial capital force. The four major state-owned banks have gone through the stage of specialized banks with their own division of labor at the beginning of the founding of the People's Republic of China, and in the new century, each of them has basically become a comprehensive large-scale listed bank, and all of them have become one of the world's top 500 enterprises.

development strategy. Today's four major banks are no longer single in business scope, and are working together towards the goal of comprehensive, international, and modern large-scale commercial banks.

Industrial and Commercial Bank of China was established on January 1, 1984, with its head office located at No. 55, Fuxingmennei Street, Beijing, and is a large state-owned bank managed by the largest bank. It has the largest customer base in China, is one of the largest commercial banks in China, and is also one of the world's top 500 companies.

One of the enterprises. The Agricultural Bank of China was originally established in 1951 and its head office is located at No. 69 Jianguomen Nei Street, Beijing. Headquartered in Beijing, it is an important part of China's financial system and one of the world's top 500 companies, ranking in the top 7 of the "Top 1000 Global Banks" with a Moody's credit rating of A1.

The Bank of China was established on February 5, 1912 through Mr. Sun Yat-sen.

Approved, officially established. The head office is located at No. 1, Fuxingmennei Street, Beijing, and is a large state-owned bank managed by the first company.

China Construction Bank was established on October 1, 1954. The head office is located at No. 25 Financial Street, Beijing, and is a large state-owned bank managed by the first company.