The central bank has finally told the truth, and China is allowing banks to go bankrupt, sending a s

This is not the first time that the official has mentioned the topic of bankruptcy in the financial industry, especially the possibility of bankruptcy of banks, which affects the hearts of hundreds of millions of depositors

First, the time to declare that the banking sector will be allowed to go bankrupt is coming. The market will decide whether the banking industry is operating well or badly. Under the financial industry, the "safe" covered by ** is about to be broken!

Second, this move is conducive to rectifying the order of the financial industry, and the vicious circle of "too big to fail, stiff but not dead" in the banking industry will no longer exist. If traditional industries, especially steel, coal and other industries, can drastically reduce production capacity, why can't the banking industry go to inefficient production capacity? The elimination of zombie enterprises should include the financial industry, and cannot be reduced to empty words.

In China, the entry threshold for the financial industry is relatively low, and some financial institutions with operational problems are also "mixed" among them, and only by resorting to the killer weapon of bankruptcy and realizing "euthanasia" for some financial enterprises that are insolvent and have no hope of turning around their losses can they release market vitality and give way to limited financial resources to financial institutions with a sense of innovation, so as to achieve the survival of the fittest. Banks that are still trying to make money lying down, wake up!

Third, it has sounded the alarm bell for market-oriented competition in the financial industry. Although many commercial banks in China have been listed one after another, there is still a "brand" of the first first, and if something goes wrong, they are still counting on the best to get to the bottom of it.

As a result, some banks have unscrupulously pursued high-risk, high-return industrial projects in credit, and even rescued zombie state-owned enterprises, resulting in continued overcapacity and frequent bad debts of banks, which may lead to potential financial risks. There are also some banks that use the golden signs of first-class institutions to promote high-rate of return wealth management products everywhere, but they don't know that there is a hidden risk of "running away" behind them.

Please ask the major state-owned banks to put down their cold shelves, get close to the people, and do a good job in financial services seriously, otherwise they will be abandoned by depositors.

Fourth, banks can also go bankrupt, which is conducive to opening up effective channels for social financing. The data shows a decline in private investment and a lack of capital in the real economy, which is a big problem for the Chinese economy in recent quarters and even in recent years. On the other hand, the bosses of private enterprises break their legs for loans, and the banks also like to ignore them.

Now, once the financial institutions are allowed to go bankrupt and cut off the best way to bail out, those banks that are "not bad for money" will be nervous, instead of continuously transfusing money to powerful state-owned enterprises and central enterprises with overcapacity, resulting in a lot of bad debts; Banks will not throw a lot of funds to central enterprises to buy land for the local king, you must know that once the property bubble bursts and the dominoes fall, the bank is the biggest victim, and it will be difficult to escape its own fate in the end.

Therefore, from the perspective of profits, banks will consider investing more money in industries and enterprises with the most returns, and some private enterprises with strong development momentum will have the opportunity to obtain bank loans. This is also a good thing for the real economy, which is short of money.

Globally, bank failures are nothing new, but they have undoubtedly dropped a bomb in China.

It is up to your bank to do it, including the organization**, business license, legal person identity certificate, etc.

To date, three banks in China have declared bankruptcy.

On August 6, 2020, the PBOC announced the bankruptcy liquidation of Baoshang Bank, which is supposed to be the third bank in China to fail. The first is Hainan Development Bank, and the second is Shangcun Rural Credit Cooperative, Suning County, Hebei Province. Since April 30, ICBC has taken over all the assets and liabilities of Baoshang Bank.

The portion of personal deposits is fully protected by deposit insurance**. Later, China Construction Bank and Huishang Bank established Mengshang Bank to take over the original business of Baoshang Bank.

Theoretically, commercial banks are also enterprises, and they can go bankrupt if they are enterprises.

Article 71 of China's Banking Law stipulates that if a commercial bank fails to pay its due debts, it shall be declared bankrupt by the people's court with the consent of the banking regulator. Therefore, the bankruptcy of a bank needs to meet three conditions at the same time: the commercial bank is insolvent; Review and approval by the banking regulatory department; The people's court declared bankruptcy.

Moreover, the current state policy also allows banks to go bankrupt. Now that the banking insurance system has also been established, bank deposits below 500,000 can be paid in full, and this amount covers accounts above the banquet.

However, there are 6 banks in China that will never fail!

Since December 2018, there have been six large state-owned commercial banks in the list of banks released by the China Banking and Insurance Regulatory Commission. They are Industrial and Commercial Bank of China, China Construction Bank, Nonghu Huiye Bank, Bank of China, as well as Bank of Communications and Postal Savings Bank. The assets of these six major banks all exceed 10 trillion yuan, of which the top four Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, and Bank of China have assets of 32 trillion yuan, 27 trillion yuan, 26 trillion yuan, and 24 trillion yuan respectively, which are also traditionally called the "four major banks".

In addition to this, there are 12 national joint-stock banks that are also very safe!

The 12 national joint-stock commercial banks include China Merchants Bank, Shanghai Pudong Development Bank, China CITIC Bank, China Everbright Bank, Huaxia Bank, China Minsheng Bank, Guangfa Bank, Industrial Bank, Ping An Bank, Hengfeng Bank, Zheshang Bank, and Bohai Bank. The major shareholders of China Merchants Bank are China Merchants Bureau, the major shareholders of China CITIC Bank are CITIC Group, and the major shareholders of China Guangfa Bank are Chinese Life and Citigroup. If the six major banks are stable and responsible, then these 12 are dynamic and responsible.

China's four major banks will not fail, China's four major banks, refers to the four large state-owned banks directly controlled by the state (Ministry of Finance, ** Huijin Company), including: 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 development strategy of professional banks in the early days of the founding of the People's Republic of China, when each of them had a division of labor, and in the new century, each of them has basically become a comprehensive large-scale listed bank, and all of them have become among the world's top 500 enterprises. 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.

Some regional banks and privately opened banks can be declared bankrupt. In fact, even small banks have a very low probability of bankruptcy and collapse, because the domestic banking industry, large and small, is strictly managed by the central bank and the China Banking Regulatory Commission, and when a bank has credit risks, the central bank and the China Banking Regulatory Commission will also strangle these credit risks in the cradle to prevent the banks from going bankrupt and failing.

The only banks that China does not allow to fail are the People's Bank of China.

Introduction: According to the provisions of the Commercial Bank Law of the People's Republic of China, if a commercial bank fails to pay its due debts, it shall be declared bankrupt by the people's court in accordance with the law with the consent of the banking regulatory authority. At present, only the People's Bank of China, that is, the central bank, is not a commercial bank, it belongs to the most important constituent department, and will not go bankrupt.

The four major state-owned banks, China Merchants Bank, Bank of Communications, and Industrial Bank are all allowed to go bankrupt, but the possibility of actual bankruptcy is extremely small.

Legal Analysis: Currently allowed. In the event of a bank bankruptcy, the depositor's deposit will be compensated by the deposit insurance institution, but the compensation is limited.

Legal basis: "Commercial Bank Law of the People's Republic of China" Article 64 When a commercial bank has or is likely to have a credit crisis, which seriously affects the interests of depositors, the banking regulatory authority may take over the bank. Answer: Search.

In China, commercial banks, ** companies, insurance companies and other financial institutions are also subject to the bankruptcy law, as long as they meet the bankruptcy conditions, they can apply for bankruptcy. The difference is that the financial supervision and administration institution shall apply to the people's court for reorganization or bankruptcy liquidation of the financial institution.

Enterprise Bankruptcy Law of the People's Republic of China

Article 2 Where an enterprise legal person is unable to pay off its debts when due, and its assets are insufficient to pay off all debts or it obviously lacks the ability to pay off its debts, it shall liquidate its debts in accordance with the provisions of this Law.

Article 134 Where a commercial bank, a ** company, an insurance company or other financial institution has any of the circumstances provided for in Article 2 of this Law, the financial supervision and administration institution may submit an application to the people's court for reorganization or bankruptcy liquidation of the financial institution. Where a financial supervision and administration institution takes measures such as takeover or trusteeship against a financial institution with major operational risks in accordance with law, it may apply to the people's court to suspend the civil litigation procedures or enforcement procedures in which the financial institution is the defendant or person subject to enforcement.

Where a financial institution goes bankrupt, it may formulate implementation measures in accordance with the provisions of this Law and other relevant laws.

Bank bankruptcy is a possible event, in case the bank goes bankrupt, remember that you don't have to lose!