Heavy! Bankruptcy of China’s second bank
The China Banking and Insurance Regulatory Commission announced that it is agreed in principle that Baoshang Bank will enter the bankruptcy process. Your bank shall carry out follow-up work in strict accordance with the requirements of relevant laws and regulations, and report to the Banking and Insurance Regulatory Commission in a timely manner in case of major situations.
From May 2019 when Baoshang Bank was taken over in accordance with the law, to the end of April 2020, Mongolia Commercial Bank was officially established and opened. The assets and liabilities of Baoshang Bank related business were transferred to Mongolia Commercial Bank and Huishang Bank, and then to Baoshang Bank. The bankruptcy application was filed for nearly 18 months, and Baoshang Bank’s risk mitigation and disposal work was carried out in a safe and orderly manner. Among them, the deposit insurance system played an important role.
When a bank is taken over and disposed of, the most concerned issue of the outside world is how to protect the rights and interests of depositors. From the perspective of Baoshang Bank’s risk disposal process, the rights and interests of depositors, especially the funds of individual depositors and small, medium and micro enterprises, have been fully protected. The “Report” pointed out that in order to protect the legal rights and interests of depositors and creditors to the greatest extent and maintain financial and social stability, the Central Bank and the China Banking and Insurance Regulatory Commission have decided to fund the Deposit Insurance Fund and the Central Bank to fully protect individual deposits and most institutional claims . At the same time, in order to strengthen market discipline, gradually break the rigid payment, and take into account the affordability of market entities, it provides an average of 90% guarantee for the creditor rights of large institutions.
Feng Lei said that this incident was iconic. The first bank in history was the Hainan Development Bank; the second bank was the Baoshang Bank. We don’t know how much of it is so tricky, but the final payer is already clear. But this also broke a myth in the minds of ordinary people, banks can still go bankrupt…
Therefore, nothing in this world is certain. The so-called certain things may not be certain. This time the bank has done it, will it be done next time? This shows what? Don’t deposit your money in a small bank. The bank at the head is relatively safe. Don’t deposit it in a small bank if it exceeds 500,000.
If there is a problem with the batch, can the upper floor still be live? Agree to the bankruptcy of Baoshang Bank and the bankruptcy of Brilliance Group has broken the myth that it cannot fail if it is too big.
Therefore, state-owned enterprises will also go bankrupt.