Chinese Cops Detain Woman for Rural Lender Bankruptcy Claims
A woman was detained in China for spreading «false information» about a rural bank’s imminent bankruptcy.
Police in China’s central Henan province detained the 29-year old female for five days over the fabrications and disruption to public order, according to the authority’s official social media account. The post did not name the bank.
Concurrently, a «Reuters» report noted that Yichuan Rural Commercial Bank, which has 33 branches in the county, said in a social media post one day before that it had experienced a high volume of over-the-counter requests and urged its customers not to «believe in rumors and take out deposits blindly». The note also assured that the bank had sufficient assets, sound business operations and management, adding that the interest of all depositors was protected by the law.
Fears about the sustainability of China's small banks are becoming increasingly real, as the country's economic growth slows to a near 30-year low. Earlier this year, the little-known Baoshang Bank experienced a rare instance of government seizure due to serious credit risks which shook local markets and prompted the central bank to inject more liquidity.
