Some banks have indeed closed some outlets recently. Since the beginning of 2020, more than 800 bank branches or branches have chosen to close.

However, the closure of bank branches does not mean bank bankruptcy. In fact, in the history of our country, only two banks have actually gone bankrupt, and in recent years, no bank has filed for bankruptcy.

In the past few decades, there have been two bank bankruptcies in our country.

The first one is Hainan Development Bank.

Hainan Development Bank was established in August 1995. The establishment of this bank itself carries a special mission, which is to restructure the non-performing assets of major credit unions in Hainan.

Because the real estate business in Hainan was developing very rapidly before this, credit unions in various places lent a large amount of money to the real estate industry. Later, due to the cooling of Hainan's property market, a large number of credit unions' debts also defaulted. Against this background, Hainan Province established Hainan Development Bank with the purpose of integrating these credit unions and achieving stability by taking on the debts of these credit unions. Purpose of Financial Markets.

However, the debts of these credit unions are indeed too heavy. After Hainan Development Bank took over the debts of these credit unions, it fell into a big dilemma. After merging 28 credit unions and hosting 5 credit unions, After creditors' rights and debts, the deposit balance of Haifa is 40 yuan, but the debt has reached 5 billion yuan, and many of these debts are non-performing assets.

By 1998, many users were dissatisfied that the interest rates provided by Overseas Bank were too low (many credit unions merged by Overseas Bank previously gave users deposit interest rates of more than 20%, but after the merger, Overseas Bank only gave 7 interest), as a result, many users directly transferred the principal and interest from overseas banks and deposited them in other banks. This made overseas banks, which had relatively small deposit balances, face a greater crisis, and a large-scale run.

On June 21, 1998, the People's Bank of China issued an announcement that because Hainan Development Bank could not pay off its due debts in time, the central bank decided to close Hainan Development Bank in accordance with relevant laws and regulations, stop all its business, and replace it with China's Hainan Development Bank. The People's Bank of China organized and established a liquidation team in accordance with the law to close and liquidate Hainan Development Bank. Since then, Hainan Development Bank has entered a substantial stage of bankruptcy.

The bankruptcy and liquidation of Hainan Development Bank has not yet completely ended. However, during the liquidation process, the central bank entrusted the Industrial and Commercial Bank of China to take custody of all the assets and liabilities of Hainan Development Bank, and all the deposits of Hainan Development Bank’s original users were transferred It is under the name of Industrial and Commercial Bank of China, so the bankruptcy of Haifa has not affected the deposits of individual users, but there are still some institutional claims and debts that have not been fully liquidated so far.

The second one is Hebei Shangcun Credit Union.

Hebei Shangcun Credit Union was established in 1956. Later, due to poor management, it became insolvent and basically ceased operations before 2010. In the first few years before it officially ceased operations, Shangcun Credit Union Cuncun Credit Cooperative has stopped accepting user deposits, so the bankruptcy of Shangcun Credit Cooperative did not cause losses to users.

In 2010, the China Banking Regulatory Commission officially approved the bankruptcy of Shangcun Rural Credit Cooperative in Suning County, and urged and guided the Hebei Provincial Government to implement bankruptcy procedures for Shangcun Rural Credit Cooperative; in August 2011, Shangcun Credit Cooperative A bankruptcy application was formally submitted to the court, and in March 2012, it officially entered bankruptcy liquidation procedures.

However, Shangcun Credit Union is only a small local financial institution and its coverage is not very large, so it did not have much impact.

Although in recent years, under the impact of various financial platforms such as the Internet, banks have indeed had a difficult time, and many banks can no longer just sit back and make money, but overall, the banking industry is still in a state of decline. The upward trend can be seen from the operating income and profits of major banks over the years, as well as the average salary of employees.

So in summary, my country's banking industry is very safe at present. The asset structure of most banks is very healthy. Even if some banks may have some operational risks due to poor management, supervision The department will also intervene in a timely manner to help these banks survive the crisis by introducing strategic investors and other methods.

Although many banks in our country have experienced some crises in the past decade or so, through restructuring and the introduction of strategic investors, these banks have been able to avert danger and have not gone bankrupt.

Therefore, on the whole, our country's banking system is very safe at present. Without some particularly serious events, it is basically impossible for banks to go bankrupt.

As of the end of 2019, according to data released by the China Banking and Insurance Regulatory Commission, the number of banking financial institutions in my country has reached about 4,500, of which village banks, rural commercial banks and rural credit cooperatives account for more than 80% of the banking industry. Don’t be surprised. Although we can see rural commercial banks and rural credit cooperatives all over the country, these banks are basically not the same. For example, the rural commercial banks you see in Fujian are not the same as the rural commercial banks you see in Jiangxi. bank. Although they all have the word "agricultural and commercial" in them, these banks are different from the Workers' and Peasants' China Construction Bank that we knew in the past. The Workers' and Peasants' China Construction Bank is the same bank across the country.

Among so many banks, have any of them filed for bankruptcy? I can tell you for sure, no! Because the People's Bank of China releases the "China Financial Yearbook" every year, but in the "China Financial Yearbook" in recent years, we have not seen any relevant bank bankruptcy news. In fact, as one of my country's special industries, once there is any disturbance in banks, there will definitely be a lot of reports. For example, in May 2019, Baoshang Bank was taken over (this was not bankruptcy), and it instantly became a hot search list. So once there is news of bank bankruptcy, the news will be overwhelming.

In the 70-year history since the founding of our country, there are currently only two bankrupt banks that can be checked. One is Hainan Development Bank (Hainan Development mainly took over the debt assets of local rural credit cooperatives, otherwise it would not be bankrupt. will not be dragged down); the other is Shangcun Rural Credit Cooperative in Suning County, Hebei Province (this company was mainly due to poor management, but the basic debts were repaid before bankruptcy, and the scale was small, so it did not cause much repercussions) . In addition, there is another bank in my country that almost went bankrupt and was successfully reorganized, namely Shantou Commercial Bank. Shantou Commercial Bank was formed in 1997 by the merger of 13 rural credit cooperatives in Shantou City. However, due to a series of illegal business operations such as high-interest deposits, misappropriation of funds, and off-book loans, a payment crisis occurred. In the end, it was unable to pay on time. The People's Bank of China ordered it to suspend business for rectification from August 2001 to 2001. However, Shantou Commercial Bank With good luck, ten years later, it was taken over by Qiaoxin Group Co., Ltd., Harbin Bank Co., Ltd., etc. and reorganized into Guangdong Huaxing Bank Co., Ltd.

There are currently no banks that have gone bankrupt, but there are still quite a few banks that have encountered operating difficulties or risks, such as Baoshang Bank, which was taken over, and ICBC, Cinda, and Great Wall Bank, which have been introduced for strategic restructuring. Bank of Jinzhou, Zouping Rural Commercial Bank whose annual report disclosed "difficult households", etc.; in addition, non-performing loans were included in the "Announcement No. 1 of 2019: Tracking Audit Results of the Implementation of Major National Policies and Measures in the Fourth Quarter of 2018" issued by the Audit Office in 2019 Banks with high ratios, low provision coverage ratios, low capital adequacy ratios, and covering up non-performing assets also have operating difficulties or operating risks.

However, even if a bank has difficulties or risks, it is still a long way from bankruptcy. This is mainly due to two factors: First, it is difficult to obtain a bank financial license. Even if there is a serious crisis, let alone The state helps (for example, Baoshang Bank appoints China Construction Bank to take over), that is, many private enterprises are still willing to invest in banks as long as they are strong enough to obtain financial licenses; secondly, bank loans basically have collateral or guarantors, so even if the NPL ratio No matter how high it is, most of the bad debt can eventually be recovered through the auction of collateral and recovery from guarantors. Therefore, as long as there is no redemption crisis, most banks can still survive.

From the current point of view, banks are still the industry with the best operating conditions in our country. At least in the 70-year history, there have only been two bankruptcy cases. This ratio is the highest no matter which industry it is placed in. An extremely excellent value.

There are currently no banks that are filing for bankruptcy, but there is one bank that is being reorganized.

1 Hainan Development Bank

Hainan Development Bank was established in Haikou in 1995 with a registered capital of 1.677 billion; its shareholders are the Hainan Provincial Government, and include China North Industries Corporation, Ocean Shipping 42 shareholders, including the group, participated in the shares;

Three years later, Hainan Development Bank went bankrupt. The reason given by the central bank was: "Unable to pay off due debts."

In fact, the bankruptcy of Hainan Development Bank can be attributed to two points:

2. Shangcun Rural Credit Cooperative, Suning County, Hebei Province

The bank went bankrupt in 2012 , but the impact was not significant because there were no individual depositors when the bank went bankrupt and its employees were properly accommodated, so the social impact was not significant.

Baoshang Bank

On May 24, 2019, a major news in the banking industry: Baoshang Bank encountered serious credit risks, and the central bank and the China Banking and Insurance Regulatory Commission took it over. for one year.

The full name of Baoshang Bank is Baoshang Bank Co., Ltd., formerly Baotou City Commercial Bank, which was renamed Baoshang Bank in 2007.

Baoshang Bank is currently undergoing reorganization. After the reorganization, Baoshang Bank may be renamed Mengshang Bank.

The newly established "Mengshang Bank" was jointly established by the Deposit Insurance Corporation, China Construction Bank, Huishang Bank, the Finance Department of the Inner Mongolia Autonomous Region, the Finance Bureau of Baotou City, and powerful enterprises in Inner Mongolia.

The above are the banks that have gone bankrupt in history and the banks that are being reorganized; it should be noted that my country’s banking system is stable and such incidents generally do not occur. In addition, they are protected by the "Bank Deposit Insurance Regulations" , even if the bank goes bankrupt and liquidates, deposits below 500,000 can be paid in full, so you can rest assured.

At present, there is only one bankrupt bank in my country. On June 21, 1998, the People's Bank of China issued an announcement to close the Hainan Development Bank, which had been born for two years and ten months. This is also the first case since the founding of New China. It is a commercial bank with a provincial government background that was closed due to the payment crisis.

Under China’s current political system, the possibility of most banks going bankrupt is almost non-existent.

Banks in China are legal financial institutions established in accordance with the law and backed by the credit of the national government.

Banks cannot go bankrupt, they can only be merged

There are currently no banks that have filed for bankruptcy.

There are two bankrupt banks in history, namely Hainan Development Bank and Hebei Suning Shangcun Rural Credit Cooperative.

The reason for the bankruptcy of Hainan Development Bank was its high rate of non-performing assets and unclear purpose of the loans. The reason for the bankruptcy of Hebei Suning Shangcun Rural Credit Cooperative was due to poor management.

In addition, after the bank goes bankrupt, depositors' deposits within 500,000 yuan in the bank can be fully redeemed. If it is other financial products, there may be greater risks.

According to data released by the China Banking Regulatory Commission, the number of low-banking financial institutions in my country has reached about 4,500 in 2019, of which rural banks and village banks account for the largest proportion. And now we are all developing in an all-round way in rural areas and towns, and each of them is in a state of profitability. For example, Dongguan Rural Commercial Bank each pays dozens of yuan in dividends per share. This has been proven through examples that they are profitable.

Of course, another point is that the newly announced profits of China's major banks are in the 5-20 range. As long as there is profit, there is no bankruptcy. , or what methods these banks now want to use to reduce costs, increase efficiency, and pursue greater benefits.

Bankruptcy does not exist.

At present, there are no banks in China that have appeared or are filing for bankruptcy. Although there have been many negative news about banks recently, such as Bank of China Crude Oil Treasure, CITIC Bank’s water leakage, etc., there is no bank in the country. File for bankruptcy!

Banks are part of the national financial system and are not prone to bankruptcy. If a bank is said to be bankrupt, it can at least be proven. A country has a crisis in the financial field. Even if there is no crisis, there will be a fault in a certain link, which will have an impact on the country's entire financial field. Domestic banks, supervised by the China Banking Regulatory Commission and the Central Bank, will not go bankrupt so easily.

In China, only one bank has gone bankrupt. It has become an isolated case so far. This bank is Hainan Development Bank. Founded in August 1995, it went bankrupt in June 1998, less than 3 years old. There are three main reasons for bankruptcy: a large proportion of non-performing assets, a chaotic banking system, and irregular business models. So far, some liquidations of Hainan Development Bank have not been completed. After decades of development, our bank has made great progress in supervision and operation, so there is no such thing as bank bankruptcy. This is entirely because you are overthinking it!

Banks filing for bankruptcy have not happened recently! Moreover, from the perspective of serving the country and the people, we should resolutely prohibit unhealthy public opinions such as "bank bankruptcy" and "quickly withdraw your deposits" that confuse people's hearts and minds.

In fact, compared with the total number of banks in our country, which is about 2,000, the historical record of bank failures in our country is extremely limited. Especially compared to the United States, where the number of banks that failed during the subprime mortgage crisis in 2008 reached more than 2,000, there were only a few bank failures in my country's history.

Objectively speaking, after 2000, my country vigorously estimated that local rural credit cooperatives and rural commercial cooperatives would be transformed into "banks", and a large number of banks were established as a result. The total number currently stands at around two to three thousand banks. The core of this historical background is:

First, standardize the supervision and management of local banks (including rural credit cooperatives and urban commercial banks), and regulate local bank financial institutions with unified supervision standards for "banks".

Second, it is expected to break the "state-owned monopoly" banking competition. Thus disturbing the local financial supply and demand relationship.

Third, it is estimated to establish different service target customer groups for effective differentiated competition.

Judging from these three factors, firstly, it is indeed in line with the world's banking operating standards, and secondly, estimated operations and differentiated operations. At the same time, credit is given to the unified regulatory standards for the world banking industry in accordance with the Basel Accord. To break the "rigid payment" and the "monopoly of state-owned banks".

Objectively speaking, due to differences in economic structure and economic strength across regions, it is also due to differences in the strength of local bank shareholders and bank capital replenishment capabilities. This leads to differences in operating risks and risk pricing capabilities of local banks.

Therefore, we have indeed seen the fact that local banks such as Baoshang Bank have been "run" or "managed" due to operational risk management problems or asset liquidity problems. This is mainly due to the "natural trust" of my country's traditional culture in banks and the "significant social impact of bank failure." Therefore, despite the protection of the "Deposit Insurance Law", the China Banking Regulatory Commission or local central banks as regulators will still use their "administrative status" Methods such as "requiring the four major banks to take custody" or "providing liquidity assistance" to resolve the operating risks or asset liquidity management risks of local banks - in fact, there is a realistic contradiction with the strategic direction of breaking "rigid payment" - — Social stability is paramount!

Therefore, bank failure is rare in our country and has special policy positioning and stabilization needs.

However, as a Chinese, we must have a positive attitude and a responsible attitude for the country and the people, and do not easily spread rumors such as "run" and "bank bankruptcy", because any bank in the world, There is a contradiction between the demand for asset liquidity and the demand for asset profitability. There are also strict "Basel Accord" standards, which strictly supervise banks' asset liquidity, capital adequacy ratio, and bad debt provision ratio. On the contrary, once rumors of "runs and bankruptcies" spread, it will easily affect social public opinion and social stability, thereby artificially creating regional financial risks or even expanding them into local financial risks. It is also harmful to the national financial system and even to its own assets

A few days ago, a piece of news caused widespread discussion. Since 2020, more than 800 bank branches or branches have chosen to close, but This is just a reduction of physical branches by some banks and does not mean that any bank will fail.

In fact, I think it is difficult for banks to fail under the current situation in our country.

So why is it difficult for banks to fail? Throughout the history of bank development in my country, only one bank has failed in a "real" sense, and that is Hainan Development Bank. I think there are three reasons for its collapse

The business is single and the risk is high. It mainly absorbed deposits from the public and then loaned them to Hainan real estate development companies. Later, the housing price bubble appeared, and the companies were unable to repay the loans, could not collect the loans, and had to pay the deposits of the people, so they naturally could not make ends meet.

Lack of supervision. The regulatory system at that time was not perfect, resulting in disorderly development.

The amount of funds is small. There is no overall scale of the head office that is as strong as other banks, and there is no profit from other local institutions to make up for its own losses, so it is difficult to stand alone.

Now other banks have learned their lessons and have much stricter supervision, so it is difficult for a similar situation to happen again. Of course, small banks have greater risks, but once a risk occurs, there should be big banks. After taking over, Hainan Development Bank’s depositors did not suffer any loss in the end.

At least so far, I have not heard of any bank filing for bankruptcy, and there is now deposit insurance. If a single depositor deposits less than 500,000 yuan in a bank, once the bank goes bankrupt, this part of the deposit and interest will be covered by Insurance pays in full.