Victims of what could be one of China’s largest financial scandals have staged protests in Henan province since their savings were frozen in April. Photo: Weibo
Asia Markets: There’s a run on Chinese banks and it’s being ignored by the world
In the anatomy of an economic crisis, a bank run is the point of no return.
Bank runs occur when people scramble to withdraw cash from banks in fear of collapse. In the worst cases, banks’ liquid cash reserves are exhausted, not everyone gets their money and the bank defaults.
It’s a grim scenario which, fortunately, has occurred rarely in history.
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WNU Editor: This story is being unreported in the West.
As to the crisis itself. Beijing is trying to control the situation by promising to compensate everyone .... China tries to stem growing anger over frozen bank deposits (CNN).
All that I can say is that they better keep their promise.
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