Bank of China, or the other 3 state banks, aren't really banks.

These four state banks aren't really back in the truest sense of the word. It's been widely estimated and believed that bad loans make up about at least 40 to 50% of their assets. The bad loans percentages in well-functioning banks in West are WELL below 10 %. State banks in China would have gone bankrupt several times already if they really use the Western standards.

Of course, it's just that the banks are backed by the Ministry of Finance (MOF) and so long as the MOF does not fail, the banks will not fail. So deposits in banks in China are as safe as state itself. Now whether the latter is really safe is a different issue.

If you think Bank of China is safe, then all commercial banks in the US are safe by the same reason. Deposits up to $250,000 are backed by Federal Deposit Insurance Commission (FDIC) with 1% interest. It's just that, unlike China's MOF, FDIC will not support any particular commercial bank. If a bank fails, FDIC will just pay back the depositors directly and let the bank fail. So banks are not safe, but your deposits are.

所有跟帖： 

• 美国为银行存款担保?可是钱从哪里来呢 -pt2186- ♂ (0 bytes) () 10/12/2008 postreply 06:37:48

• You missed get my point. -lyztoon- ♂ (1166 bytes) () 10/12/2008 postreply 09:36:29