kayode10
VIP Contributor
Bankruptcy is one of the unforeseen circumstances that happens to different companies including financial institutions.
One thing I know about banking sector is that, once a bank files for bankruptcy, the Central Bank in that country will take over the bank and pay off the investors and the customers.
This happened recently in my country when bank filed for bankruptcy due to lots of unservice loans incured by the customers.
The bank later filed for bankruptcy after struggling with finance and negative cash flow for a long period of time.
The Central Bank take over the company and merge it with another highest bidder financial institution.
A situation may happen in which the insurance company someone is using files for bankruptcy. So I want to ask that who will pay back all the premium made by the clients of the company?
One thing I know about banking sector is that, once a bank files for bankruptcy, the Central Bank in that country will take over the bank and pay off the investors and the customers.
This happened recently in my country when bank filed for bankruptcy due to lots of unservice loans incured by the customers.
The bank later filed for bankruptcy after struggling with finance and negative cash flow for a long period of time.
The Central Bank take over the company and merge it with another highest bidder financial institution.
A situation may happen in which the insurance company someone is using files for bankruptcy. So I want to ask that who will pay back all the premium made by the clients of the company?
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