If a foreign bank goes bankrupt, the monetary insurance company that has business dealings with the foreign bank will pay compensation.

To put it bluntly, it is to set up a deposit insurance fund management institution, and then deposit institutions, including commercial banks, pay premiums to the institution to form a deposit insurance fund. In the future, once an insurance institution goes bankrupt, is unable to operate, is cancelled or is taken over, the deposit insurance fund institution can compensate depositors with the money from the deposit insurance fund. According to the exposure draft, the fund will implement a limit payment when the bank encounters risks, and the maximum payment limit is 500,000 yuan. That is to say, the sum of the principal and interest of the same depositor in the deposit account of the same deposit institution is paid in full within 500,000, and the part exceeding 500,000 is paid from the liquidation property of the deposit bank.