China banks vow to repay more customers after protests
Chinese regulators have promised to repay more victims of one of the country’s biggest-ever banking scandals, after hundreds of thousands of customers were left without access to funds, triggering rare mass protests.
China’s rural banking sector has been hit hard by Beijing’s efforts to rein in a property bubble and spiralling debt, in a financial crackdown that rattled the world’s second-largest economy.
Four banks in Henan province froze cash withdrawals in mid-April as regulators scrutinised alleged mismanagement, leaving billions of yuan in savings locked up and sparking sporadic demonstrations.
Authorities later named those firms and another rural bank in nearby Anhui province as involved in a scheme to defraud investors — and promised victims would start to get their money back.
“Henan New Fortune Group manipulated five village banks in Henan and Anhui to illegally absorb and occupy public funds … and covered up illegal activities,” an unnamed China Banking and Insurance Regulatory Commission representative told state media Sunday, citing a three-month initial police investigation.
Chinese regulators have promised to repay more victims of one of the country’s biggest-ever banking scandals, after hundreds of thousands of customers were left without access to funds, triggering rare mass protests.
China’s rural banking sector has been hit hard by Beijing’s efforts to rein in a property bubble and spiralling debt, in a financial crackdown that rattled the world’s second-largest economy.
Four banks in Henan province froze cash withdrawals in mid-April as regulators scrutinised alleged mismanagement, leaving billions of yuan in savings locked up and sparking sporadic demonstrations.
Authorities later named those firms and another rural bank in nearby Anhui province as involved in a scheme to defraud investors — and promised victims would start to get their money back.
“Henan New Fortune Group manipulated five village banks in Henan and Anhui to illegally absorb and occupy public funds … and covered up illegal activities,” an unnamed China Banking and Insurance Regulatory Commission representative told state media Sunday, citing a three-month initial police investigation.
Source: eNCA
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