Causes and Enlightenment of Guangdong Trust Bankruptcy

Internal: due to the long-term lack of supervision and management mechanism of SDIC, illegal operations such as blind lending, investment and off-balance sheet operations. Ten years of debt accumulation has brought great repayment pressure to Guangdong International Trust and Investment Corporation, and it has begun to fall into crisis. After 1995, Guangdong SDIC ushered in the peak period of debt repayment. Coupled with the high non-performing rate and poor liquidity of the company, Guangdong SDIC illegally absorbed funds at high interest rates, borrowing new ones and returning old ones. From July 1995 to May 1997, a total of 762 million yuan was illegally absorbed. As a result, the senior executives of Guangguotou Shenzhen Branch were detained in 1996 on suspicion of economic crimes, and their debts were made public, which led to a credit crisis.

Exterior: The outbreak of the Asian financial crisis has caused a great impact on Guangdong SDIC, bringing greater risks and challenges. 1997 in the second half of the year, a financial crisis broke out in Asia. In June, the Central Financial Work Conference 1 1 gave the latest instructions on strengthening financial supervision, deepening financial reform, preventing financial risks and rectifying financial order. However, Guangdong International Trust and Investment Corporation did not follow the general principles and policies, and still went its own way. The management mechanism is still chaotic, the review of the debtor's solvency and credit evaluation is loose, and tens of billions of loans are issued at will.

In order to survive the Southeast Asian financial crisis safely and ensure that foreign economies are below the red warning line, the central government has stepped up its governance of the foreign exchange market. 1998 Guangdong SDIC had1200 million dollars due, and the huge debt problem was made public, which was suspected of violating the rules. 1In June, 1998, the People's Bank of China sent an investigation team to investigate the financial situation of Guangdong International Trust and Investment Company, and soon other huge debt problems were exposed.

Enlightenment: The bankruptcy case of Guangdong SDIC Trust has the limitations of the times, but the contractor bank that recently declared bankruptcy is similar to it, with chaotic management and cronyism; The risk control of loan review is not good, so muddle along.

Coupled with the recent takeover of Sichuan Trust, Xinhua Trust, New Era Trust, Huaxin Trust and Anxin Trust, for investors, it seems that there is a similarity in terms of risk, that is, there is a problem with the manager.