How to deal with the business after the bankruptcy of the Contractors Bank

category:Finance
 How to deal with the business after the bankruptcy of the Contractors Bank


According to the announcement, Huishang banks acquisition of contractor banks includes target business, target assets, target liabilities and target personnel. The full text of the announcement is 9 pages long.

Source: announcement of Huishang bank

Specifically, the target business is divided into four categories: the business and assets involved in the bookkeeping dimension of the four branches of the subcontractor bank, the on balance sheet and off balance sheet corporate credit business with the final customer registered outside the Inner Mongolia Autonomous Region, the retail loan business and assets of the four branches, the credit card business and assets of the four branches, and the customer registration place in the Inner Mongolia Autonomous Region in the off balance sheet financing business Business and assets.

Among them, the following businesses and assets involved in the bookkeeping dimension of the four branches include:

The second is the off balance sheet business and assets recorded by the four branches of the subcontractor Bank: off balance sheet acceptance bill, letter of guarantee and entrusted loan;

Fourth, the business in transit under the above business, including the business to be continued with the stock settled and the business to be continued.

The target assets are divided into: the assets involved in the bookkeeping dimension of the four branches, the business units where the four branches are located and the assets under the credit card business, and the non business contracts within the validity period.

Target liabilities include due and unpaid as of the transaction base date as follows: deposits from interbank and other financial institutions, deposits received, employee compensation payable, interest payable, estimated liabilities, other accounts payable and other liabilities. The target liabilities do not include the liabilities under the custody business and the financial management business carried out by the four branches of the subcontractor bank.

The target personnel include: the four branches affiliated to Beijing, Shenzhen, Chengdu and Ningbo registered by the subcontractor bank on May 24, 2019, the business branches of the financial business department and financial market business department of the head office to the regions where the four branches are located, and the contract employees and dispatched employees who have no objection to the transfer of labor relations / labor dispatch relations in the credit card department / sub center of the four branches u3002

Is take over good or bad?

Huishang bank announced that as of the transaction base date, the book value of the assets under the acquisition undertaking and the total liabilities of the subcontractor bank undertaken by Huishang bank were 98.382 billion yuan, the asset appraisal value was 65.347 billion yuan, and the business value was 15.3 billion yuan. The bank is not required to pay cash to the subcontractor bank for this acquisition undertaking.

With the unanimous agreement of the subcontractor bank, the bank and the deposit insurance fund, the amount of the balance between the banks undertaking liabilities and the purchase assets appraisal value shall be deducted from the amount of business value to be paid by the bank. The total amount of the remaining amount is 17.735 billion yuan. Within 30 working days after the signing of the acquisition undertaking agreement, the deposit deposited with the bank shall be used by the deposit fund to pay to the designated account of the bank Pay.

Xiao Liang, a senior researcher at the Institute of financial supervision, believes that in general, it has both advantages and disadvantages.

Disposal history of contractor bank

On May 24, 2019, due to serious credit risk, the subcontractor bank was jointly taken over by the peoples Bank of China and the China Banking and Insurance Regulatory Commission. The takeover group fully exercises the operation and management rights of the subcontractor bank, and entrusts CCB to trust the business of the subcontractor bank.

In January 2020, the takeover group, in accordance with the market-oriented principle, entrusted Beijing financial assets exchange to select Huishang bank as the merger and acquisition Party of four branches outside Inner Mongolia Autonomous Region, and determined the subscription share and share price of the shareholders of the newly established bank, namely, mengshang bank.

On April 30, 2020, Mongolian Commercial Bank was officially established and opened. On the same day, the takeover group of the subcontractor bank issued the announcement on the transfer of related business, assets and liabilities of the subcontractor Bank Co., Ltd., which transferred the relevant business, assets and liabilities to mengshang bank and Huishang bank respectively. According to Article 18 of the regulations on deposit insurance, the deposit insurance fund provides financial support to the Mongolian Commercial Bank and Huishang bank, and shares the asset impairment loss of the original contractor bank, so as to facilitate the smooth acquisition, undertaking and smooth operation of the relevant business. On November 23, 2020, the official website of China Banking and Insurance Regulatory Commission (CIRC) announced the official reply on the bankruptcy of the contractor Bank Co., Ltd., which said that the contractor bank was allowed to enter the bankruptcy procedure in principle. On the same day, the Beijing first intermediate peoples Court issued a civil ruling showing that the court accepted the bankruptcy liquidation application of the contractor Bank Co., Ltd. Source: China Securities Journal Editor in charge: Yang Bin_ NF4368

On April 30, 2020, Mongolian Commercial Bank was officially established and opened. On the same day, the takeover group of the subcontractor bank issued the announcement on the transfer of related business, assets and liabilities of the subcontractor Bank Co., Ltd., which transferred the relevant business, assets and liabilities to mengshang bank and Huishang bank respectively. According to Article 18 of the regulations on deposit insurance, the deposit insurance fund provides financial support to the Mongolian Commercial Bank and Huishang bank, and shares the asset impairment loss of the original contractor bank, so as to facilitate the smooth acquisition, undertaking and smooth operation of the relevant business.

On November 23, 2020, the official website of China Banking and Insurance Regulatory Commission (CIRC) announced the official reply on the bankruptcy of the contractor Bank Co., Ltd., which said that the contractor bank was allowed to enter the bankruptcy procedure in principle. On the same day, the Beijing first intermediate peoples Court issued a civil ruling showing that the court accepted the bankruptcy liquidation application of the contractor Bank Co., Ltd.