What if the bank goes bust?There have been four bankruptcies in China, with depositors receiving losses of up to 500,000 yuan

2022-05-28 0 By

Keeping spare money in the bank is considered the safest way because it guarantees that the amount will not decrease, even if the value of the money does not increase much.After all, business failures may be normal, but banks are unlikely to fail.According to relevant data, the amount of bank deposits of Chinese residents increased by 1,536 billion yuan, and the total amount of deposits reached 192.88 trillion yuan.As China has the highest deposit profit in the world, especially after the outbreak of COVID-19 in 2020, more people begin to realize that it is necessary to have a sum of money in the bank.After all, depositing idle money in a bank is not only a way to use it for emergencies at special times, it’s also a way to earn extra interest on a deposit.But is there really no risk when you put your money in the bank?Is it true that banks can’t go bust?In general, bank bankruptcy is a low probability event, the probability of occurrence is very small, but it will still exist.According to the gradual improvement of the national legal system for banking business management, at present, China has four banks, because of their own operational problems and had to declare bankruptcy, so banks are not as people think that there is no risk, the situation of bank bankruptcy is also possible.In 1998, Hainan Development Bank, a popular lender at the time, became the first Chinese bank to declare itself insolvent.Investigate its reason, because at that time in hainan, local outbreak of large-scale runs, the bank itself appeared very serious credit crisis, even if the national related department carried out 3.4 billion funding, didn’t also can fill the hainan development bank was piled up by the “bad”, eventually had to declare bankruptcy.Soon after, Shangcun Rural Credit Cooperative, located in Suning County, Hebei Province, had to go through its own liquidation process because of poor management, making it the first credit cooperative in China to declare itself bankrupt.The third bank to fail was Shantou Commercial Bank, which was formed by the merger of 13 local credit cooperatives.However, the People’s Bank of China finally ordered the bank to close down due to some problems such as high interest and internal funds being misappropriated, which resulted in bad debts of up to 4 billion yuan.And when the market gradually tends to be stable and the internal order of the bank is gradually established and perfected, people also believe that the bank bankruptcy is more and more unlikely to occur.Fourth, Baoshang Bank declared bankruptcy because of its own insolvency.When many people hear the name Baoshang Bank, they may think it is a small bank. In fact, it is a bank with a large international reputation.Among the top 500 banks in Asia, it ranks in the top 10.When people see here will be worried, the bank is bankrupt, that their money in the bank before how to do, is not to get back.Actually otherwise, according to the related regulation of domestic Banks, when the bank filed for bankruptcy, a customer can get the highest bank 500000 yuan of indemnity, that is to say, if the principal plus interest of less than 500000 yuan are deposited in the bank, you can get the full payment, if more than 500000 yuan, you will need to bank after completion of the liquidation itself,Only then can carry on compensation to certain extent to this kind of user.However, the bankruptcy treatment of Baoshang Bank is different. According to relevant information, the Central Bank revealed that baoshang Bank will make full compensation to the users and some institutions of personal storage this time, that is to say, even if the account deposit exceeds 500,000 yuan, it is possible to get full compensation.At the same time, in order to recover the losses of some bond institutions, the Central bank will intervene in the liquidation compensation and directly provide 90% of the fund guarantee.At the same time, some people who have taken out loans from failed banks may wonder if they don’t need to pay back their car loans or mortgages if the banks are bankrupt.Such an idea is unrealistic. Banks are also institutions that need to make profits to satisfy their own operation. Even if the bank goes bankrupt, the mortgage and car loans that need to be repaid still need to be repaid.Because even if the bank went bankrupt, also can carry on the transfer of their own business, there will be new institutions to take over the business, to deal with the bankrupt bank loan business, just changed an object of repayment, the arrears that need to be returned, or need to continue to return.Conclusion From the bankruptcy of Baoshang Bank, although the probability of bank bankruptcy is very small, it will still happen. At the same time, the bank bankruptcy is not directly related to the size of the bank itself, and the bank will still go bankrupt if it has problems in its own operation.Of course, knowing that the bank will go bankrupt, there is no need to take out their money in the bank, after all, China’s four major banks are endorsed by the state, the safety factor is still very high.What people should really do is not put their spare money in one place, have a reasonable plan.Today’s topic: How to deal with bank failure?There have been four bankruptcies in China, with depositors receiving losses of up to 500,000 yuan