The contractor bank was taken over for one year! Will personal deposits be affected? Baoshang bank was taken over by the CIRC for one year due to serious credit risk, according to the central bank and the CIRC today. The Beijing News inquires about the commercial bank law, when a commercial bank has or may have a credit crisis, seriously affecting the interests of depositors, the banking regulatory authority of the State Council may take over the bank. In addition, the takeover is terminated in three cases.
On May 24, according to the official website of the people's Bank of China, in view of the serious credit risk of Baoshang Bank Co., Ltd. (hereinafter referred to as Baoshang bank), in order to protect the legitimate rights and interests of depositors and other customers, in accordance with the relevant provisions of the law of the people's Republic of China on the people's Bank of China, the law of the people's Republic of China on banking supervision and the law of the people's Republic of China on commercial banks, the Bank of China The Insurance Regulatory Commission has decided to take over the Contractor's Bank from May 24, 2019 for a period of one year.
So, under what conditions will the bank be taken over?
The Beijing News inquired about the "take over and termination" section of Chapter VII of the commercial bank law. Article 64 pointed out that when a commercial bank has or may have a credit crisis, which seriously affects the interests of depositors, the banking regulatory authority of the State Council may take over the bank. The purpose of taking over is to take necessary measures to protect the interests of depositors and restore the normal operation ability of commercial banks. The creditor's right and debt relationship of the commercial bank to be taken over will not change due to the taking over.
According to Article 65 of the commercial bank law, the takeover shall be decided and implemented by the banking regulatory authority under the State Council. The decision of the banking regulatory authority under the State Council to take over shall contain the following contents: (1) the name of the commercial bank to be taken over; (2) the reasons for taking over; (3) the organization of taking over; (4) the term of taking over. The decision to take over shall be announced by the banking regulatory authority under the State Council.
The commercial bank law also points out that the take over starts from the day when the take over decision is implemented. From the date of taking over, the taking over organization shall exercise the operation and management power of the commercial bank. Upon the expiration of the term of taking over, the banking regulatory authority under the State Council may decide to extend it, but the longest term of taking over shall not exceed two years.
Then, under what circumstances is the takeover terminated?
According to Article 68 of the law of the people's Republic of China on commercial banks, the takeover shall be terminated under any of the following circumstances:
（1） The term specified in the take over decision has expired or the extension of the take over period decided by the banking regulatory authority under the State Council has expired;
（2） The commercial bank has resumed its normal operation ability before the term of taking over expires;
（3） Before the term of taking over expires, the commercial bank is merged or declared bankrupt according to law.