Which is safer, private banks or village banks?

Abstract: There are many types of banks. For most people, private banks and village banks may not be familiar with them. Village banks are a new type of banking financial institutions in China. Unlike private banks, village banks cannot be initiated by natural persons, and their promoters must be commercial banking financial institutions approved by the regulatory authorities. Let's understand the difference between private banks and village banks. Which is safer? First, the difference between private banks and village banks

Both private banks and village banks belong to banks and independent legal institutions in essence. To say the difference, there are mainly the following aspects:

1, ownership structure

Private banks are banks controlled by private capital and operated by market-oriented mechanism. The regulatory authorities require private banks to have a minimum registered capital of 2 billion yuan, which is higher for the sponsoring shareholders.

The establishment of village banks must be initiated by commercial banks that meet the regulatory standards and have good operating efficiency, and the shareholding ratio is not less than 65,438+05%, and the shareholding ratio of a single non-financial institution is not more than 65,438+00%. The minimum registered capital of village banks established in districts and counties is not less than 3 million yuan, and the registered capital of village banks established in townships is not less than 6.5438+0 million yuan. In fact, the registered capital of all established village banks is generally tens of millions or even hundreds of millions of yuan.

2. Develop a model

A private bank can only have one branch. According to the different development models, private banks can be divided into three types: pure internet type; Quasi-internet type; Traditional bank types. Due to the lack of physical outlets, private banks are not competitive in traditional basic businesses such as deposit taking and lending, so for private banks, the sources of savings deposits mostly rely on shareholders' funds and interbank deposits. Therefore, most private banks rely on Internet channels, and other private banks also use traditional channels in internet plus. Moreover, their service radius is relatively wide, and they can directly serve small and medium-sized enterprises and personal consumption loans.

As rural banks are independent legal entities with districts and counties as the mainstay, their physical outlets sink to the township level, which is similar to the development model of local rural commercial banks. Local customers are also the main customers of loans. The development model is more traditional, and both liabilities and assets depend on offline channels.

2. Which is safer, private banks or village banks?

Both rural banks and private banks have the qualifications issued by the CBRC. As long as they are ordinary deposits, their banks must buy deposit insurance for depositors, which means they will be protected by the Deposit Insurance Ordinance. If a bank files for bankruptcy due to poor management, it can get up to 500 thousand compensation. So as long as your deposit does not exceed 500,000, the security of deposit in any bank is the same. Since the security is consistent, if you want to deposit, you can consider banks with high deposit interest rates.