On the mainland, saving has always been a good habit for most people. People keep excess money in the bank in case they need it, as they generally believe that the bank is safe and reliable, and that it earns a certain amount of interest income.
Compared to riskier financial methods such as funds and stocks, savings are safer and more flexible despite lower interest rates. As long as there are no problems with the bank, there is no risk to deposits. However, two recent bankruptcy filings have raised concerns about deposit liability and payouts. This is a topic of great concern.
1. Two banks filing for bankruptcy
Have you heard? Recently, two banks filed for bankruptcy, one is the Liaoning Rural Commercial Bank and the other is the Taizihe Village Bank. As soon as this news came out, it caused many people to discuss and worry.
We all know that a bank is a place that provides all kinds of financial services, including savings, loans, money transfers, and so on. In theory, the bank should be a place with money, because we keep the money, not the bank's own. Banks also make money by issuing loans, for example.
In addition, banks also offer attractive deposit rates, which means that deposit rates may vary from bank to bank. Banks will also flexibly adjust according to the central bank's benchmark interest rate, and in order to pay our depositors' interest, banks need to make various investment and financial management.
However, some banks will inevitably have problems in their operations. They use our money to invest money, but those investments are not always safe. If the investment fails, our money may not come back, and the bank itself does not have enough spare funds, which can lead to the bankruptcy and closure. This is not uncommon.
Second, who will protect the savings of the common people
In response to this problem, the mainland has established a deposit insurance system to provide a solution. According to the Deposit Insurance Law of the People's Republic of China, every depositor can enjoy a certain percentage of insurance benefits on deposits in the same bank.
The purpose of this system is to prevent financial risks from causing huge losses to individual depositors, while maintaining the stable operation of the financial market.
So what is the specific payment method? According to the Deposit Insurance Act, each depositor's deposit can be paid in full, but up to the statutory limit.
In short, if a bank goes bankrupt, each depositor can receive up to the full payout within the statutory limit to ensure that their basic life and normal economic transactions are not greatly disturbed. If the deposit exceeds the statutory limit, the excess may not be paid in full.
In addition, the intervention of the central bank is also an important part of the guarantee system. When a bank is at risk of bankruptcy, the PBOC can take a range of measures to protect depositors' interests, including providing liquidity support and assisting in the disposal of bank assets, to ensure that the bank can continue to meet its commitments to depositors.
Third, how ordinary people will choose banks in the future
In the future, when we choose a bank, we can no longer only focus on interest, but also be more cautious. So how do you choose the right bank for you?
First of all, it is very important to see if there is a "deposit insurance" label hanging in front of the bank. Now, every bank that participates in deposit insurance must be marked at the gate, and this label has become a key factor in our selection of banks.
Second, consider how much money you're going to save. If you have strong financial resources, you can consider storing funds in a bank, but it is best to control them within 500,000, which can better diversify risks.
Write to the end:
Although bank deposits are generally relatively safe, they are not without potential risks, especially for smaller banks, which may be at greater risk of failure. Therefore, when depositing, we as depositors should take some wise measures, such as diversifying our deposits, paying close attention to the health of the bank, and considering diversifying our investments.
In addition, it is crucial to have an in-depth understanding of deposit insurance and payout mechanisms to help us take the right actions quickly to protect our property in the event of an unfortunate event.
Let's remember that financial investments are risky, so we need to be cautious when planning our finances. Sound financial planning is made based on individual circumstances to ensure that our property is both safe and appreciative. In any case, being rational and cautious is the first principle of a wise investor.