Recently, the official website of the State Administration of Financial Supervision and Administration issued an announcement that Jinzhou Hengsheng Village Bank and Gaocheng Hengsheng Village Bank were approved for dissolution. This is the news that 10 village and township banks across the country have been approved for dissolution this year. What is the whereabouts of the deposit and loan business of these village and township banks, and can the depositors get their money back?
Background and reasons for the dissolution of village and township banks
As a financial institution focusing on rural areas, village and township banks are mainly committed to providing financial services to farmers, agriculture and rural areas, aiming to alleviate the contradiction between supply and demand of rural finance and promote rural economic development. However, village and township banks also face a number of challenges, including relatively small size, tight capital, high risk, and weak management.
In the context of increased financial supervision, increasingly fierce market competition, and continuous transformation of the rural economy, some village and township banks found it difficult to sustain themselves and fell into difficulties such as insolvency, operating losses, and inability to repay debts, which eventually led to the dissolution of the banks.
Procedures and results of the dissolution of village and township banks
According to the Measures for the Administration of Village and Township Banks, the dissolution of a village or township bank needs to be approved by the financial regulatory authorities and liquidated in accordance with legal procedures. In the process of liquidation, the deposit and loan business of village and township banks generally goes in two ways: one is that the large banks in which the shares are invested take over in accordance with the law, and the other is that they are disposed of in a market-oriented manner.
Judging from the 10 village and township banks that have been dissolved this year, most of them have been inherited by the large banks in which they have participated in the shares, such as the business of Jinzhou Hengsheng Village Bank and Gaocheng Hengsheng Village Bank have been inherited by Bank of China, while individual banks have withdrawn through marketization, such as the business of Yongnian County Rural Credit Cooperatives in Handan City, Hebei Province, which has been completely cleared.
For depositors, the dissolution of village and township banks will not affect their rights and interests, as their deposits are protected by the deposit insurance system. The deposit insurance system refers to the payment of a certain amount of compensation to depositors by a special agency set up by the state to protect the legitimate rights and interests of depositors when a financial institution is at risk.
At present, the mainland's deposit insurance system stipulates that each depositor can receive a maximum of 500,000 yuan in compensation for deposits with the same financial institution. Therefore, even if the village or township bank is dissolved, the depositor's deposit will not be lost, as long as it is collected at the financial institution that inherits or disposes of it within the specified time.
The significance and impact of the dissolution of village and township banks
The dissolution of village and township banks is an optimization and adjustment of the rural financial market by the financial regulatory authorities, aiming to promote the structural restructuring of village and township banks, resolve the risks of financial institutions, and strengthen the rural financial system. Through the dissolution of village and township banks, we can eliminate some inefficient, rigid, and unscrupulous financial institutions, improve the overall quality and competitiveness of the rural financial market, and promote the healthy development of rural finance.
At the same time, the dissolution of village and township banks also provides space and opportunities for the development of other types of rural financial institutions, such as rural credit cooperatives, rural cooperative banks, rural mutual financial organizations, etc., which can better meet the diversified, differentiated and personalized financial needs of rural areas, and provide more high-quality, efficient and convenient financial services for farmers, agriculture and rural areas.
epilogue
The dissolution of village and township banks is not the end of rural finance, but a new starting point for rural finance. In the new historical period, rural finance is facing new challenges and opportunities, and it needs to be continuously innovated and reformed to adapt to the changes and development of rural economy and society.
It is believed that with the support and guidance of national policies, the regulation and supervision of financial regulatory authorities, the efforts and cooperation of financial institutions, and the understanding and trust of depositors, rural finance will be able to achieve high-quality development and make greater contributions to rural revitalization and farmers' prosperity.