What to do if a bank goes bankrupt, will the bank go bankrupt, will it fail?

Weekly Chat Rating: Baoshang Bank.

1. (1) In the event of a bank bankruptcy, the depositor's deposit will be compensated by the deposit insurance institution, but the compensation is limited. According to the information disclosed so far, the maximum compensation amount for depositors in a single bank may be 500,000 yuan, and the part of the deposit that exceeds this limit will not be compensated.

2) According to the limit of 500,000 yuan planned by the central bank, after the implementation of the deposit insurance system, if the depositor's deposit in a single bank is not more than 500,000 yuan, in the event of the bank's bankruptcy and collapse, the depositor will receive full compensation equal to the actual deposit amount; If the deposit exceeds 500,000 yuan, the maximum compensation is 500,000 yuan, and the excess part may not be paid, or as in the United States and Taiwan, a certain percentage of the compensation will be paid.

There are two scenarios that can occur after a bank goes bankrupt.

1 Will be acquired by other banks.

2 It will be temporarily taken over by ** (People's Bank of China, Banking Regulatory Bureau).

Banks are the core of the modern economy, and their bankruptcy will lead to a financial crisis, especially the state will not let it go bankrupt, and even if it goes bankrupt, it can only go bankrupt when all creditor's rights and debts are sorted out.

No. There is only the People's Bank of China in our country.

That is, the central bank does not belong to commercial banks, it belongs to the first constituent department, and will not fail and go bankrupt. The four major state-owned banks and China Merchants Bank.

Bank of Communications, Industrial Bank, etc. all allow bankruptcy, but the possibility of actual bankruptcy is extremely small.

In addition, the bankruptcy is some local commercial banks or banks, because of poor management or poor management eventually face bankruptcy, but this kind of bank generally gives a more attractive deposit interest rate, so many depositors are also willing to choose such a bank, but we also know that high income represents high risk, the risk of the failure of this small bank is actually very large, it is likely to make users lose their money.

Extended Information: Precautions for Missing Businesses in the Banking Industry:

There is an age requirement to apply for a credit card, that is, the principal card applicant should be 18 to 60 years old (25 to 60 years old for foreigners), and the supplementary cardholder should be 14 years old (inclusive) or above, and the principal cardholder can be an immediate family member.

Parent, spouse or child) to apply for an additional card.

When applying for a credit card, providing sufficient financial proof can help increase your credit limit. Proof of financial resources can be bank payroll records, or income tax withholding vouchers (tax payment certificates), or housing, cars, savings and investment market value documents and other documents that can prove the user's financial level. The real estate certificate must contain the name of the person or spouse (with proof of relationship), and the car license must be in the name of the person.

1 In the event of a bank bankruptcy, depositors' deposits will be compensated by the deposit insurance agency, but the compensation is limited. According to the information disclosed so far, the maximum compensation amount for depositors in a single bank may be 500,000 yuan, and the part of the deposit that exceeds this limit will not be compensated.

2) According to the limit of 500,000 yuan planned by the central bank, after the implementation of the deposit insurance system, if the depositor's deposit in a single bank is not more than 500,000 yuan, in the event of the bank's bankruptcy and collapse, the depositor will receive full compensation equal to the actual deposit amount; If the deposit exceeds 500,000 yuan, the maximum compensation is 500,000 yuan, and the excess part may not be paid, or as in the United States and Taiwan, a certain percentage of the compensation will be paid.

2. The bank went bankrupt, and Yan Qingmin, vice chairman of the China Banking Regulatory Commission, said at the Peking University Economic and Wealth Forum that the China Banking Regulatory Commission was instructing the staff to speed up the introduction of bank bankruptcy regulations, which caused a thousand waves with one stone.

Article 71 of the Commercial Bank Law of the People's Republic of China provides that if a commercial bank fails to pay its debts when due, the people's court shall declare it bankrupt in accordance with the law with the consent of the banking supervision and administration agency. If a commercial bank is declared bankrupt, the people's court shall organize the banking regulatory authority and other relevant departments and relevant personnel to set up a liquidation group to carry out liquidation. When a commercial bank goes bankrupt and goes into liquidation, it shall, after paying the liquidation expenses, the wages owed to its employees, and the labor insurance premiums, give priority to the payment of the principal and interest of its personal savings deposits.

Paragraphs 1 and 2 of Article 509 of the Civil Code shall fully perform their obligations in accordance with the agreement. The parties shall follow the principle of good faith, and perform obligations such as notification, assistance, and confidentiality in accordance with the nature and purpose of the contract and the customs of the contract. Article 30 of the Enterprise Bankruptcy Law stipulates that all the property belonging to the debtor at the time of acceptance of the bankruptcy application, as well as the property acquired by the debtor after the acceptance of the bankruptcy application and before the end of the bankruptcy procedure, shall be the property of the debtor.

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.