The bankruptcy and dissolution of small and medium-sized banks in China are becoming more frequent, which has caused concern among many depositors. Recently, Sichuan Ya'an Rural Commercial Bank absorbed and merged Sichuan Hanyuan Rural Commercial Bank, Sichuan Asbestos Rural Commercial Bank, Sichuan Tianquan Rural Commercial Bank, Sichuan Lushan Rural Commercial Bank, Yingjing County Rural Credit Cooperative and Baoxing County Rural Credit Cooperative, and inherited the claims and debts of these six institutions. In this regard, many depositors are starting to worry about what they will do if the depository bank goes bankrupt or dissolves. In fact, it is not uncommon for banks to fail in recent years. However, even if some small and medium-sized banks go bankrupt and fail, their claims and debts will still be handled by the receiver bank, and the safety of depositors' deposits is guaranteed.
According to the deposit insurance regulations, as long as the depositor's deposit amount is less than 500,000 yuan, they can be compensated in full even if the bank goes bankrupt. At present, the vast majority of depositors have deposits of less than 500,000 yuan. Therefore, depositors' deposits are secured. However, if the total amount of deposits and interest of the depositor exceeds 500,000 yuan, the excess will be paid according to a certain proportion after the bank goes bankrupt and liquidated. As a result, depositors may suffer a partial loss of their deposit.
Many may wonder why more and more small and medium-sized banks are failing or dissolving. The main reasons are as follows: First, the increasingly fierce competition among banks has led to the bankruptcy of some small and medium-sized banks that are not operating well. Second, small and medium-sized banks tend to attract deposits with high interest rates, but invest their deposits in high-return projects, resulting in unrecoverable investments and no choice but to declare bankruptcy. Third, the major shareholders of some small and medium-sized banks misappropriated depositors' deposits for other investments in violation of regulations, but the failure of the investment led to the bank's lack of liquidity and eventual bankruptcy.
In response to the fact that six small and medium-sized banks have been approved for dissolution since 2024, many depositors have raised the question of how to deposit more safely. Here are a few suggestions: First, before depositing money into a small or medium-sized bank, be sure to check whether the bank participates in the deposit insurance program. According to reports, there are still some small and medium-sized banks that do not participate in deposit insurance for various reasons. Therefore, it is important to check if the bank has a deposit insurance logo when making a deposit.
Second, in pursuit of high interest rates in small and medium-sized banks, many depositors keep all their funds in the same bank. However, in order to diversify risk, it is best for depositors to spread their deposits across several banks. For example, if you have a deposit of 1 million yuan, you can deposit it into three banks separately. This way, even if a bank goes bankrupt or dissolves, the depositor will still receive the full amount of compensation.
Third, depositors should find out whether the bank has been penalized by the regulator and how strong the small and medium-sized bank is when making deposits. Only by choosing a small and medium-sized bank with a good reputation and not being punished by the regulatory authorities can you deposit with peace of mind. If the depositor learns through online channels that the bank has been penalized by the regulator for non-compliance before making a deposit, it is better not to deposit funds with the bank.
Fourth, depositors should not mistakenly purchase other wealth management products when depositing, because other wealth management products are not protected by bank deposit insurance. When many depositors make deposits, bank employees will recommend other wealth management products, resulting in depositors mistakenly purchasing and suffering heavy losses.
When depositors go to the bank to make a deposit, they must not be misled by the recommendations of some employees, so as not to buy bank wealth management products, bancassurance products, ** trusts, etc. If a depositor intends to make a fixed deposit with a bank, he or she should ask the bank to provide a paper certificate of deposit. With paper certificates of deposit, depositors will have legal effect and avoid the risk of mistakenly purchasing other wealth management products.
The above are suggestions for the bankruptcy or dissolution of small and medium-sized banks. Hopefully, these recommendations will help savers make their deposits more securely. However, we still need to continue to pay attention and think about the next bank bankruptcy or dissolution. Only by continuously learning and understanding the financial market can we better protect our own property security.