2. Bad debts are packaged, cut and stripped. Stripping off the bad debts of the bank, packing them aside, and redeeming the funds after the bank recovers. If the bank goes bankrupt, the government will pay the bill and clean up the bad debts.
3. Inject funds to solve liquidity. When banks are in a liquidity crisis and people run, they will inject funds to increase cash flow. Or the government comes forward to guarantee and enhance social confidence; Or the government can guarantee that other banks can lend.
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The impact of the financial crisis
The financial crisis has a far-reaching impact on the world economy. According to the data provided by the Institute of Finance of China Academy of Social Sciences, the market size of subordinated bond derivative contracts has been enlarged to nearly $400 trillion, which is equivalent to seven times the global GDP.
Japanese media reported that this crisis will lead to the global financial assets shrinking by $27 trillion. Former Federal Reserve Chairman alan greenspan wrote: "One day, when people look back today, they may think that the current financial crisis in the United States is the worst since the end of World War II." The impact of the crisis on the real economy has now appeared, and the decline of the world economy is almost a foregone conclusion.
China is the least damaged developing country in this crisis, with small direct losses, but the indirect impact cannot be underestimated. Exports will decrease, and as one of the troika driving economic growth, its role will begin to weaken; Investor confidence is shaken and investment enthusiasm is not high; Banks are reluctant to lend and domestic liquidity is insufficient.
Baidu Encyclopedia-Financial Crisis