Rumor-Stoked Bank Runs Break Out in China Like Never Before (2)

July 15, 2020, 5:07 AM

Social media-fueled rumors about banks collapsing are popping up at an unprecedented frequency in China, forcing regulators and even the police to step in to calm depositors.

Just since the past month, worried savers have descended on three banks to withdraw funds amid rumors of cash shortages that were later dismissed as false. Over the weekend customers rushed to a bank in the northern Hebei province to take out money, prompting local regulators to publicly vouch for the soundness of its lenders as the police halted the run.

Confidence in the $43 trillion banking system is eroding among the nation’s...

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