Fears allayed after bank runs in China

Business | Winnie Lee 24 Jun 2020

Chinese officials have sought to allay depositors' fears following a run on banks in Hebei and Shanxi provinces last week, mainland media reported.

Customers flocked to withdraw deposits in Shanxi Yangquan City Commercial Bank over two days last week, prompting the local government, financial monitoring organization and the bank to issue announcements. The People's Bank of China and the Yangquan branch of the China Banking and Insurance Regulatory Commission both emphasized the bank was sound with sufficient capital and that it had joined the deposit insurance plan.

Yangquan City's deputy mayor Huang Haitao also said the bank was "operating normally with adequate cash."

Customers were also reported to be pulling out cash from the Bank of Baoding in Hebei province, prompting the local police in Wangdu to come out with a statement that the lender was not bankrupt.

 

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