Is it possible for a bank to fail? What could be the possible reason for the collapse?

Banks are at risk of failing. If a bank's system for controlling risk, especially operational risk, is weak, the risk of failure will arise.

It is possible, but it will be less likely. The possible reasons are credit risk, interest rate risk and exchange rate risk, generally speaking, even if it goes bankrupt, the maximum compensation of depositors' deposits can reach 500,000.

At present, the business model of many commercial banks in China is relatively simple, mainly absorbing deposits and issuing loans. However, due to the slow growth of deposits in recent years and the increase in the number of banks and branches, the situation of too many people eating has become increasingly prominent. In the competition within the industry, small banks cannot compete with large banks and are more likely to be eliminated in the face of increasing competitive pressure.

China's five major banks that are not allowed to fail "China's five major banks that are not allowed to fail" should be one of the six major state-owned banks, namely the Industrial and Commercial Bank of China, the Agricultural Bank of China, the Bank of China, the China Construction Bank, the Bank of Communications, and the Postal Savings Bank of China.

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Of all the banking institutions, the bank that is unlikely to fail is the People's Bank of China.

According to the "Commercial Bank Law of the People's Republic of China", if a commercial bank fails to pay its due debts, the people's court shall declare it bankrupt 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. Other banks will have the possibility of failure and bankruptcy, but in terms of the importance and scale of banks, the banks that generally do not fail are naturally large state-owned banks.

No. 1 in the ranking of the top 10 safest banks in China [Digital Banking]: Industrial and Commercial Bank of China.

Second place: China Construction Bank.

The third loser: Agricultural Bank of China.

Fourth place: Bank of China.

Fifth place: China Merchants Bank.

Sixth place: Postal Savings Bank.

No. 7: Bank of Communications.

8th place: China CITIC Bank.

No. 9: Shanghai Pudong Development Bank.

No. 10: China Everbright Bank.

Banks will fail. The financial institutions that are not allowed to fail in our country are insurance companies, and banks are financial institutions that are self-financing, so they will fail. China's Hainan Development Bank and Britain's Bank of Bahrain collapsed.

Founded in 1995, Hainan Development Bank collapsed in 1998 and collapsed only three years after its establishment.

The Bank of Baring, a 233-year-old commercial bank with more than £27 billion in global assets, collapsed on February 26, 1995. The Bank of Bahrain collapsed because Nick Lisson illegally bought the Nikkei in large quantities**.

The collapse of the Hainan Development Bank and the Bank of Bahrain shows that both the long-established banks and the newly established Xinsheng Bank may fail. The Bank of Bahrain held several times as many times the assets of the Hainan Development Bank, and the Bank of Bahrain collapsed.

According to Article 71 of the Law of the People's Republic of China on Commercial Banks, if a commercial bank fails to pay its debts when due, the people's court shall declare it bankrupt with the consent of the People's Bank of China. Where a commercial bank is declared bankrupt, the people's court shall organize the People's Bank of China and other relevant departments and relevant personnel to set up a liquidation group to carry out liquidation.

China's laws also make it clear that commercial banks will fail. Therefore, depositors should put the bank failure in perspective.

1. Banks will also go bankrupt and fail.

2. The bank is a joint-stock company, and it must be liquidated if it fails. The money deposited by depositors in the bank is the liability of the bank, and the loans issued by the bank are assets. When a bank fails, that is, the company goes bankrupt, it naturally has to be liquidated. The risk of bank failure exists, but it is low.

3. Most of the controlling parties of domestic banks are the state, local governments at all levels and state-owned enterprises. In layman's terms, banks belong to the state, and the probability of bankruptcy is too small. Of course, there are also privately held banks, but the bank's financial license, which is the golden rice bowl given by the state, with this golden rice bowl, you can't go hungry wherever you want food.

Theoretically, China's banks will also fail, but China has relative support and takeover measures for banks that are about to fail, so the probability of bank bankruptcy is very, very low. For Chinese banks, receivership and bankruptcy are similar concepts, because when a bank is on the verge of bankruptcy, China** will entrust a state-owned bank to take over the bank that is about to fail. In fact, the management of banks in China is relatively strict, so it is rare for them to go bankrupt.

After the bank fails, the user's deposit in the bank is compensated. The institution that pays the bank loan after the bankruptcy is the insurance institution of the bank deposit, but the compensation must be made after the bankruptcy petition has been accepted by the banking regulator. Bankrupt banks are very rare in China, and they are generally smaller, commercial banks, while state-owned banks and some well-known banks are basically not bankrupt.

If the user is really worried about the safety of the bank deposit, he can choose to store the funds in a state-owned bank with a national background.