A Brief Analysis Of The Bank'S Bankruptcy Protection Financial Management

The premise of capital preservation is that the bank will not go bankrupt. If the capital preservation payment is discharged after deposit, if the bank fails, will the capital preservation fund be guaranteed?

The commercial bank law promulgated in 2005 stipulates that when a commercial bank goes bankrupt and liquidation, it should pay the principal and interest of the personal savings deposit first after paying the liquidation expenses, the wages owed by the workers and the labor insurance expenses.

Therefore, in the process of bankruptcy and liquidation, the order of bank's ordinary creditor's rights must be ranked after bank deposits.

Newly released "

"If a bank fails, the depositor can get a maximum compensation of 500 thousand.

Recently, many people are worried: "if the deposit of a bank has a" deposit insurance "to protect it, what about the financial products of the guaranteed capital? Is it still guaranteed capital?" with the public's doubt, the reporter interviewed a number of banking experts, who believed that the so-called "guaranteed Finance" was based on the premise that the bank would not go bankrupt.

Once the bank is bankrupt, the deposit insurance priority is guaranteed by deposits.

Not in the ranks of protection.

Bank financing products have been endorsed by banks even though they appear.

It also got the "rigid cash".

But the sudden "deposit insurance" has given investors scruples.

"Once banks are no longer available for banks, banks will not be able to reveal their financial products. If banks fail, will there be no guarantee for capital preservation products? Will deposit insurance be paid?"

A financial manager of a joint-stock bank said that the "capital preservation" in capital preservation is built on the premise that the bank is not bankrupt, and if it is bankrupt, the deposit within only 500 thousand yuan can be guaranteed.

He said, "investors and banks signed the" guaranteed cost management contract "clearly stated that the bank has the conditions to protect the principal security. This conditional premise is that the bank will not go bankrupt, if bankrupt loses its solvency, the principal part of the financial products will not be mentioned.

In fact, the deposit insurance Ordinance clearly states that the maximum repayment limit for insured deposits, including renminbi deposits and foreign currency deposits absorbed by insurance institutions, is 500 thousand yuan, and that those that exceed the maximum repayment limit shall be compensated according to law from the liquidation property of insurance institutions.

Yin Yanmin, an analyst with silver rate network, said that for non guaranteed financial products, its profits and losses were borne by investors.

For the guaranteed financial products, the bank's credit is actually guaranteed. The principal is guaranteed by the bank. Once the bank goes bankrupt, it means that the bank's guarantee can not be fulfilled. The loss of principal can only be treated as a common creditor's right through the judicial process.