This is huge.
Don’t know how this will end.
This Henan bank is NOT the only one that is having problems with liquidity.
Chinese authorities will repay more victims of the nation’s biggest bank scam as it seeks to placate angry customers who have been denied access to tens of billions of yuan of deposits for months.
Clients from the four rural banks in the central province of Henan and one in Anhui with deposits of up to 100,000 yuan ($14,800) will be repaid from today, according to the local offices of the China Banking and Insurance Regulatory Commission.
Authorities began to repay individuals with deposits of below 50,000 yuan last Friday, after hundreds of disgruntled bank customers who took to the streets found tanks blocking their way. Arrangements for those with higher amounts of savings will be subject to further notice, the watchdog had said. from Bloomberg
I’m really surprised no one has mentioned Kaifeng Jjjjjj, jjjjjs!!!
@ Roland
But you have great faith in the Jewish system I presume –
PROTOCOL No. 20
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TYRANNY OF USURY
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32. So long as loans were internal the GOYIM only shuffled their money from the pockets of the poor to those of the rich, but when we bought up the necessary person in order to transfer loans into the external sphere, all the wealth of States flowed into our cash- boxes and all the GOYIM began to pay us the tribute of subjects
https://www.rt.com/news/global-finance-shylock-model-605/
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How many shares does Turnbull hold?
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Goldman Sachs – The Bank That Runs the World
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http://www.onnetflix.ca/goldman-sachs-the-bank-that-runs-the-world/26072
A Crisis Worse than ISIS? Bail-Ins Begin
While the mainstream media focus on ISIS extremists, a threat that has gone virtually unreported is that your life savings could be wiped out in a massive derivatives collapse. Bank bail-ins have begun in Europe, and the infrastructure is in place in the US. Poverty also kills.
At the end of November, an Italian pensioner hanged himself after his entire €100,000 savings were confiscated in a bank “rescue” scheme. He left a suicide note blaming the bank, where he had been a customer for 50 years and had invested in bank-issued bonds. But he might better have blamed the EU and the G20’s Financial Stability Board, which have imposed an “Orderly Resolution” regime that keeps insolvent banks afloat by confiscating the savings of investors and depositors. Some 130,000 shareholders and junior bond holders suffered losses in the “rescue.”
Read on –
http://wakeupfromyourslumber.com/a-crisis-worse-than-isis-bail-ins-begin/
Australia Plans Cyprus-Style “Bail-In” Of Banks In 2013-14 Budget
G20 Governments All Agreed to Cyprus-Style Theft Of Bank Deposits … In 2010
“………That’s something else to thank our recently-deposed PM Julia Gillard for doing, without our knowledge or permission
https://barnabyisright.com/2013/07/10/australia-plans-cyprus-style-bail-in-of-banks-in-2013-14-budget/
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Thankyou kaiwanshou that explains it well. Ed
pretty obvious .you wouldn,t trust the chinese system with your lunch money
Westerners imagine they are special, and immune to liquidity problems and bank runs, just like the people of Henan a couple of months ago.
If Western banks are so healthy, why did Western governments recently introduce bail-in laws?
Depositors should be reminded, that they appear under the bank’s liabilities section, – its costs the bank money to keep them.
Depositors are the banks cannon fodder.
A non Western side of the story –
Fintech Platforms Are Behind the Push in Capital into Henan’s Little-Known Rural Banks
Li Na | Lv Qian
DATE: Jun 23 2022
/ SOURCE: Yicai
https://www.yicaiglobal.com/news/fintech-platforms-are-behind-the-push-in-capital-into-henan-little-known-rural-banks
(Yicai Global) June 23 – Individuals from across China have been depositing as much as millions of Chinese yuan, equivalent to hundreds of thousands of US dollars, into accounts in central Henan province’s rarely heard-of rural banks. Third-party platforms run by Chinese internet and fintech giants such as Baidu, JD.com and Lufax are playing an important role in guiding the funds to these lenders, which offer an above-average interest rate.
Yuzhou Xin Minsheng Village Bank, Shangcai Huimin Village Bank, Zhecheng Huanghuai Community Bank, and the New Oriental Country Bank of Kaifeng all came to the public eye recently after a number of depositors were unable to withdraw cash as their Covid-19 health codes inexplicably turned red, preventing them from leaving their homes. This sparked an investigation into an organization called New Wealth Group whose owner has stakes in the four banks. (Read more about New Wealth Group: https://www.yicaiglobal.com/news/henan-police-probe-new-wealth-gang-after-bank-clients-covid-codes-turned-red)
Funds are being directed to these four banks through over 30 third-party channels, such as Baidu’s DuXiaoman Financial, JD.Com’s JD Digits, Ping An Insurance (Group)’s Koudai Bank, Trip.Com’s Ctrip Finance, smartphone makers’ e-wallets, such as Xiaomi Finance and Oppo Wallet and internet financial platforms Binhai (Tianjin) Financial Assets Exchange and Lufax Holding, according to documents from these banks. And several depositors told Yicai Global, that they are offering rates of around 5 percent a year, much higher than most banks.
Third-party platforms must have a financial license in order to sell wealth management products, but there is no such requirement for selling deposit products, where they mainly play an introductory role.
Some platforms, such as JD Digits, charge an introductory fee per client. But most, including DuXiaoman and Lufax, charge a proportion of the deposits, an ex-employee of a third-party platform told Yicai Global.
Wang Feng and her family had deposited more than CNY600,000 (USD89,781) in the four Henan banks as of December 2020, she told Yicai Global. They bought five-year fixed-term deposits through DuXiaoman at an annual interest rate of 4.8 percent which are protected by a ‘deposit insurance,’ she added. According to Chinese law, deposits of over CNY500,000 in a single account are covered by deposit insurance and can be fully redeemed.
Wei An deposited CNY100,000 (USD15,000) in Shangcai Huimin Village Bank through a wealth management platform Wacaibao. His savings, though, stopped bearing interest from May 29. “There is no reason to be concerned,” the app’s customer service responded. “Wacaibao has penned cooperation agreements with the bank, and all savings products are protected by the country’s laws and deposit insurance.”
Dodgy Dealings
Since 2020,Minsheng Village Bank, Huimin Village Bank, Zhecheng Huanghuai Community Bank, and Anhui province-based Guzhen New River Huai Village and Township Bank connected with Du Xiaoman, JD Digits, Binhai FAE and other internet-based financial platforms through a liaison platform called Junzheng Zhida.
Yuzhou Xin Minsheng Village Bank, Shangcai Huimin Village Bank, Zhecheng Huanghuai Community Bank and the New Oriental Country Bank of Kaifeng each announced on June 20 that they will ‘start online registration of clients from now on to conform with requirements by financial authorities’ in an effort to offer more transparency.
Last January, the financial regulator stipulated that lenders must not sell fixed-term deposits on non-self-operated online platforms” and “those products that had already been sold before the new ruling was issued will be discontinued once they are due,” Liu Anbang, partner of DeHeng Law Offices, told Yicai Global. Third-party platforms’ liability, should they be found to have defrauded depositors or participated in the unlawful collection of public funds, will be determined based on the role they played.
If New Wealth is found guilty of illegally seizing public deposits, the money will be frozen and returned to depositors, although there is a risk that they might not get their money back, Liu said.
(Names have been changed to protect the person’s identity)
Editors: Chen Juan, Kim Taylor
WHERE DID THEY MAKE LOANS AND IT WHAT CURRENCY ?? What are you saying is the cause ??
Hi, kaiwanshou, Part your Quote: “In fact, giving money in red envelopes is the way to up the social and economic ladder there.” Here in Australia we have Brown paper BAGS…
Cognitive dissonance in extremis
For a start the money there is Renminbi – RMB, also Yuan, but RMB is the most common spoken label. All paper money has RMB and Yuan, on it, but RMB is the most common spoken.
It seems Western commentators use Yuan just to be pedantic, likewise with the actual name of the country.
Also there is no such language as Mandarin Chinese. If you ask the people there if they speak/write Mandarin they can become quite angry because they don’t know what “Mandarin” is. Mandarin is a derogatory term invented by the British when they subdued the country with Opium.
One “Bi” is one cent. Renmin is “the people” “bi” is the name of their money; Renminbi, the peoples’ money. The Bank of China is the Renmin (People) Yinghang (Bank) in their language.
CATACLYSMIC DUCK “For a country of intelligent people, your medical officers and leaders must have earned their stripes by sucking.” That is a very accurate statement of life there! In fact, giving money in red envelopes is the way to up the social and economic ladder there. It’s called “guanxi”, not to be confused with the province “Guangxi”.
Even the President, Xi Jinping, must give red envelopes to his superiors to stay in power. Yes, he has superiors. They are shown on international TV when they have their May Day. Look for group of old men in common clothing, together.
Is anyone asking why ?? Just the Chinese Bank Boogie Men.? What is the connection to the rising US $ and the loans to locals and regional borowers !!
Lock down millions of people for one case of a runny nose and sore throat is no good for the economy.
Swallow your pride China.
For a country of intelligent people, your medical officers and leaders must have earned their stripes by sucking.