ANI |
Updated: Jul 30, 2022 20:00 IST
Beijing [China], July 30 (ANI): The recent protest in Henan by people who were denied access to their accounts exposed China’s “biggest bank scam”.
Hundreds of disgruntled bank customers in China have been protesting for the last two months as their accounts were frozen by four rural banks in the central province of Henan and one in Anhui, reported Financial Post.
Chinese bank scams pose threat to public confidence in the financial system. The bank scam is not an isolated or alone event or the first time in China. Bank scams are happening in China. Despite strict regulations, the country has 4,000 small and medium-sized lenders that collectively control about USD 14 trillion in assets.
However, confidence in these banks has waved since 2019, when the government seized a lender for the first time since 1998 and imposed losses on some creditors.
An official probe into the current case found that Henan Xincaifu Group Investment Holding Co, a private investment firm with stakes in the five exposed banks, colluded with bank employees to take deposits and marketed financial products via online platforms, before transferring the money by fabricating lending agreements, reported Financial Post.
Although the police had taken some suspects into custody and seized and frozen funds and assets involved in the case, widespread discount…
