First, the era of declaring that the banking industry is allowed to go bankrupt is coming. Whether the banking business is good or bad is left to the market to decide. Under the financial industry, the "safe box" covered by the government will be broken!
Second, this move is conducive to rectifying the order of the financial industry, and the strange circle of "too big to fail and too stiff to die" in the banking industry will no longer exist. Since traditional industries, especially steel and coal industries, can cut production capacity drastically, why can't banks cut inefficient production capacity? The elimination of zombie enterprises should include the financial industry and cannot be reduced to empty talk.
In China, the entry threshold of the financial industry is relatively low, and some financial institutions with operational problems are also "mixed fish and dragons". Only by using bankruptcy as a killer weapon to euthanize some insolvent financial enterprises with no hope of turning losses can we release market vitality, let limited financial resources give way to innovative financial institutions and realize the survival of the fittest. Those banks that are still lying to make money, wake up!
Third, it has sounded the alarm of market-oriented competition for the financial industry. Although many domestic commercial banks have been listed one after another, the government's "brand" still exists, and if something goes wrong, it still depends on the government.
It has led some banks to pursue high-risk and high-return industrial projects unscrupulously in credit, and even to rescue zombie state-owned enterprises, resulting in rising overcapacity and frequent bad debts of banks, which may lead to potential financial risks. There are also some banks selling high-yield wealth management products everywhere under the golden signboard of government agencies, but they don't know that there is an unpredictable "running away" risk behind them.
Please ask the major state-owned banks to put down their cold shelves, be close to the people once, and do a good job in financial services, otherwise they will be abandoned by depositors.
Fourth, banks can also go bankrupt, which is conducive to opening up effective channels for social financing. The data shows that the decline of private investment and the shortage of funds in the real economy are the major problems facing China's economy in recent quarters and even in recent years. On the other hand, the boss of a private enterprise ran off his leg for a loan, and the bank also ignored it.
Now, once financial institutions are allowed to go bankrupt and government relief is cut off, those banks that are "not short of money" will be nervous, instead of constantly giving blood transfusions to powerful state-owned enterprises with overcapacity, resulting in a large number of bad debts; Banks will not distribute a large amount of funds to central enterprises to buy land kings. You know, once the property market bubble bursts and dominoes fall, banks will be the biggest victims, and eventually born to die.
Therefore, from the perspective of profit, banks will give more consideration to investing money in industries and enterprises with the highest rate of return, and some private enterprises with strong development momentum will have the opportunity to obtain bank loans. This is also a good thing for the real economy that lacks money.
On a global scale, bank bankruptcy is nothing new, but it has undoubtedly dropped a bomb in China.