People gather in front of a branch of Jiangsu Sheyang Rural Commercial Bank, in Yancheng, Jiangsu province, March 25, 2014. Credit: Reuters/Stringer
Hundreds Rush To Rural Chinese Banks After Solvency Rumors -- Reuters
(Reuters) - Hundreds of people rushed on Tuesday to withdraw money from branches of two small Chinese banks after rumors spread about solvency at one of them, reflecting growing anxiety among investors as regulators signal greater tolerance for credit defaults.
The case highlights the urgency of plans to put in place a deposit insurance system to protect investors against bank insolvency, as Chinese grow increasingly nervous about the impact of slowing economic growth on financial institutions.
Regulators have said they will roll out deposit insurance as soon as possible, without giving a firm deadline.
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My Comment: China watchers have been voicing their concerns on China's banking system for years .... this is surprising no one.
1 comment:
There are forces a foot that no amount of enlightened policies or good pr are going to stop. Slow down, cover up for a while, or shift somewhere else temporarily, but not stop.
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