In the history of New China, only four banks have gone bankrupt, namely Shantou Commercial Bank, Hainan Development Bank, Hebei Suning Shangcun Rural Credit Cooperative and Baoshang Bank.

Banks are allowed to go bankrupt, and many depositors are beginning to worry. If the bank fails, what will happen to the money we deposited in it?

Most people do not need to panic about bank failure. If the bank fails, the insurance company will pay full compensation if the deposit is less than 500,000.

This is because the "Deposit Insurance Regulations" were officially implemented on May 1, 2015, which clearly stipulates that deposit insurance shall implement limited compensation, with a maximum compensation of RMB 500,000. The People's Bank of China shall perform the deposit insurance function and be responsible for deposits. Implementation of the insurance system and related management of deposit insurance funds.

If the amount is less than 500,000, the full compensation can be paid, and the amount above 500,000 will be paid on a case-by-case basis.

For individual users with deposits of more than 500,000 yuan, when the bank goes bankrupt and cannot pay compensation in full, there are generally two treatment measures:

1 According to the bank User liquidation will be carried out accordingly. This is done as a last resort. After the bank has compensated users with a value of less than 500,000 yuan and settled all aspects, it will pay compensation for the part above 500,000 yuan.

Generally, the compensation is proportional. For example, you have deposited 2 million in the bank, but when the bank liquidates, it can only compensate you 500,000 first, and the remaining 1.5 million will be liquidated according to the proportion of the remaining balance of the bank distributed to each user.

2 Merger with other banks. This means that you can deposit your deposit in this bank to another bank. This method does not cause any loss to the user, it is just that the deposit has been transferred to another bank.

Generally speaking, the second option will be used first after a bank failure.

However, in daily life, the probability of bank failure is still very low. If you don’t want to take a little risk, the best way is to have no more than 500,000 deposits in each bank.

What we should note is that if the bank fails, except for deposits, other financial products purchased are not protected.

That is to say, if you buy a financial product from a bank, it will not be protected whether it is capital guaranteed or non-principal guaranteed.

For example, if you purchase insurance from an insurance company, funds, bonds, trusts, etc. from a fund company sold by the bank, such products will not be covered by the deposit insurance regulations if there are redemption risks or capital losses. , although these products are sold to you by the bank, the bank is not responsible for compensation.