Bank run hits rural China after deposit safety fears spread
PANIC over the financial health of two small banks prompted a run on them in provincial eastern China yesterday.
There were bank runs on both the Jiangsu Sheyang Rural Commercial Bank and the Rural Commercial Bank of Huanghai, with residents flooding to reclaim their investments. The People’s Bank of China has said that it is in negotiations with major banks about the beginnings of a deposit insurance system.
Concerns about the level of intervention guaranteed by the Chinese government have risen since a solar panel manufacturer called Chaori Solar defaulted on a bond payment earlier this month.