1. Hainan Development Bank, after which the debts of depositors were assumed by the Industrial and Commercial Bank of China (ICBC) after the bank's collapse.

2. Shantou City Commercial Bank, which was declared defunct in 2001 for reasons of high bad debts.

3. Baotou City Commercial Bank, the reason for bankruptcy is due to the operation of the major shareholders of the illegal occupation of funds.

4, there is also the Hebei Suning Shangcun Agricultural Credit Union also declared bankruptcy.

Originality

The word bank, originating from the Italian Banca, its original meaning is bench, chair, is the earliest market money changers business appliances. English translated into Bank, meaning the cabinet for money. In our country, the reason why there is "bank" is related to the history of our economic development.

In our history, silver has been one of the main monetary material. The word "silver" often represents money, while "bank" is the title of a large commercial organization. The term "bank" for a large financial institution that handles silver and money was first used in the "New Essay on Capitalism" written by Hong Ren_ of the Taiping Heavenly Kingdom.

Origins

The earliest bank is generally considered to be the Italian bank founded in Venice in 1407. Subsequently, banks were established in Amsterdam in the Netherlands, in Hamburg in Germany, and in London in the U.K. Banks developed generally from the end of the 18th century to the beginning of the 19th century.

In the 17th century, some commoners became rich through business and became wealthy merchants. They kept their money in the king's vaults for safety. It should be noted here that there was no paper money at that time, and by storing money, I mean storing gold.

Because of the "free coinage" system, where anyone could take gold bullion to the mint and have it minted into gold coins, the mint allowed customers to deposit gold. Unfortunately, these merchants didn't realize that the mint belonged to the king, and if the king wanted to use the gold in the mint, there was no way to stop him.

In 1638, the king of England, Charles I, was at war with the Scottish nobility, and in order to finance the war, he requisitioned the gold of the commoners at the mint and loaned it to the king.

The picture below is Charles I. Later in 1649, he was beheaded by Cromwell, which was the famous English bourgeois revolution, details of which can be found in Notes on the History of England (IV).

Although, the requisitioned gold was eventually returned to its original owners, the merchants felt that the mint was no longer safe. So they deposited their money with the goldsmith (Goldsmith). The goldsmith then opened a voucher for the person who had deposited the money, and with this voucher, they could later take out the gold.

Soon the merchants realized that when they needed money, they didn't need to take out the gold at all, they just had to give the gold voucher to the other person.

And then it dawned on the goldsmiths that the vouchers they had opened actually had the effect of money! They couldn't resist the temptation and started to open "fake vouchers". But the amazing thing is, as long as all the customers are not the same day to take gold, "fake vouchers" is the same as "real vouchers". This is the origin of the "reserve system" in modern banking, and the origin of the "money creation" mechanism. The banking system can amplify the amount of credit money, which physical money cannot do.