Based on information released on Aug. 26 by the CBIRC, the China Banking and Insurance Regulatory Commission, the commission has allowed two rural banks in Liaoning Province to enter bankruptcy proceedings, which is tantamount to officially declaring the bankruptcy of the two grassroots village banks.
At the same time, a growing number of personal bank cards and even corporate accounts are being frozen in China, and the situation is also spreading in China’s first-tier cities.
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China’s Bank Failure Has Just Begun: Freeze Bank Cards, Limit Withdrawals – The Financial Crisis Comes
In recent years, China’s economic growth has been nothing short of extraordinary. Its banks have played a vital role in this impressive growth by lending to both individuals and companies, fueling investments and consumer spending. However, behind the facade of a booming economy, signs of trouble have started to emerge. China’s financial system is facing a crisis, and its effects are starting to ripple through the nation.
Alarm bells started ringing when news broke of a series of bank failures in some of China’s regional banks. As panic spread among depositors, authorities took swift action to prevent a complete collapse of the financial system. Freeze bank cards and limiting withdrawals are the desperate measures being implemented to counter the gravity of the situation. This drastic step is an attempt to prevent a bank run, as customers rush to withdraw their savings due to concerns about the safety of their funds.
The crisis stems from a combination of factors that have plagued China’s banking sector for years. Rapid credit expansion, particularly to state-owned enterprises, has led to overcapacity in various industries and fueled a massive property bubble. Additionally, corruption and lax lending standards have resulted in a significant increase in non-performing loans. These toxic debts have been piling up on banks’ balance sheets, weakening their financial position and threatening the stability of the entire system.
China’s banking crisis is not an isolated event. It is a symptom of deeper structural issues within the Chinese economy. The country’s growth model, heavily reliant on debt-fueled investments, has reached its limits. The government’s previous stimulus measures have only delayed the inevitable reckoning. Now, the bill for years of excessive lending and speculative investments is coming due.
The repercussions of a full-blown banking crisis in China would be felt far beyond its borders. With the world’s second-largest economy at risk, global markets would undoubtedly plunge into turmoil. International companies with significant exposure to China would see their profits heavily hit. Countries that rely on Chinese demand for their exports would face severe economic repercussions. The ripple effects would spread like wildfire, potentially leading to a global recession.
China’s government recognizes the gravity of the situation and is grappling with the immense challenge of resolving the crisis without resorting to a full-scale economic meltdown. Authorities have started to implement measures aimed at deleveraging the economy, reducing financial risks, and strengthening the banking sector. However, these steps require careful balancing as they risk slowing down economic growth, which, in turn, could exacerbate the crisis.
The freeze on bank cards and withdrawal limits is a stark reminder of the fragility of China’s banking system and the potential vulnerability of depositor funds. It serves as a wake-up call to the Chinese people, underlining the need for prioritizing financial stability over unsustainable growth. The crisis also highlights the perils of excessive leverage and the importance of sound risk management in preventing or mitigating such catastrophes.
As events unfold, China’s banking crisis will undoubtedly shape the country’s economic landscape and have a profound impact on the global economy. The world will be watching closely to see how Chinese authorities manage the situation and whether they can chart a path towards a more sustainable and resilient financial system. Only time will tell if these drastic measures will be effective in averting a full-blown catastrophe or if China’s banking failure has just begun.
Punishing the corrupt bankers obviously I understand but punishing the victims of the thefts too is just sick. I hope the bank boss on the run is caught, thieving little bastard.
not to worry corrupt commie rat Xi got his investment out before the bank closed.
Absolutely unbelievable!
The Chinese govt is so greedy for ccp officials to corrupt the people's money. So devil of this CCP(demonic) administration I guess if that is the actual situation in China right now that's why they're bullying the Philippines in west Phil sea. Also wants to totally invade the Taiwan. So demonic acts.
The CCP is hoarding the cash from banks in China to buy fire crackers and sparklers for their invasion of Taiwan.
Silicon valley Bank Collapse' next Taiwan bank
The banks belong to the ccp. The COMMUNISTS. If you have any trust in them? You’re screwed.
china has a very interesting history and a turbulant one. the country is very big and difficult to control. yes, there is corruption and it ruins the country and confidence of the people. corruption is everywhere but, it is worst in china. my parents were from china but, i was born in canada. i have done business with chinese companies before in the past and i noticed that they do business differently from the west. there is no easy way to fix these problems but, i think it is up to the people to try and change to make the country alot better.
So sad
Chinese banks becoming Lebanon banks…
The USA had the same issues in the past… China will have to bail out the banks maybe ? Or bulk mortgagee sales ?
Communism at its best!!!
lol. There are US bank failures every year. Between 2008 and 2015 there were more than 500 bank failures in the US.
A worker recently returned to Chengdu after 3 years, hoping to have a reunion with family members and pay off the house loan, got all his bank cards freeze the moment he is out of quarantine. Bank refers him to public security, public security refers him to police, police refer him back to bank. It went round and round, and finally told him the money will be freeze for 5 years with no black and white. Seem very obvious what they want before they release it. He is bringing money into China, not out, yet the local government officials all try to rip overseas returnee off. They don't care and heartless. To them, you can go back to the country again and make more money to bring back. They just sit there waiting to rip these hardworking overseas workers. China still a long way to catch up to the rest of the world.
They are so eat up with getting their Hands on more and more money. and not one dime of any money. can do anything for that ugly shell they live in. What a miserable retched souls they are headed for destruction going against their own country but most important they go against the holy Creator and be a god to themselves only may God bless these poor people from such pain and torture and evilness
More banks will be made bankrupt. Sad
The EU and US both have their issues but nothing like China. China lacks a democratic government and doesn't have rule of law. Rule of law is a principle of governance in which all persons, institutions and entities, public and private, including the state itself, are accountable to laws that are publicly promulgated, equally enforced, and independently adjudicated, and which are consistent with international human rights principles.
How could the chairman allow this to happen? He will save the investors
ha ha ha ha ha ha
11:11 "" Cash Recycling System ""
the money is all gone and the c.c.p. know it because the c.c.p. are the ones that used it it is a total wipe out .
steel the wealth of the people and make them into the slaves of the c.c.p.a slow way to make the c.c.p. into a empire .
is it possible to get paid from any job in china with cash? from what i read all jobs pay directily into bank accounts. how will people survive if you work and can use none of the money in your account?
No body in the US trusts china, their products or their money because it is a communist regime. Redtube is a communistic regime. But this is a bad omen the world over. When the communistic countries close their banks it's a warning to the democratic countries. Biden can't do one thing nor can he approach the situation because he took milli ok from china, our enemy and he should be tried for treason. Whenever the news brings this up Buden angrily shuts it down. But Pelosis' son makes Hunter look like an angel.
any 1 remember the cashless propaganda in all world ?
just 1 mistake and you make all use cash again fck banks and corupt ppl.
The funds on those frozen accounts will go directly to China. How terrible. We always knew China’s gov. was corrupt but at this depth is horrific.
The trust of banks in China have lost their integrity. All the money China's banks is been stolen by the CCP CADRES. The scenario in China is people work hard for just to have the thieves to clear up their hardwork money into their CCP CADRES pocket.
This how a dictatorship works
EVERYTHING SOLD IN THE UNITED STATES IS MADE IN CHINA … AND YET BANKRUPTCY = MOST OF THERE PRODUCTS IS GARBAGE …
Imagine living in the 0.1% of society, enjoying everything materialism has to offer and still feeling entitled to the slave wages of peasants? The banality of evil.
Just waiting for the uprising
The only thing is that so many people are brain washed by their leaders that it will be easy to squash
Banks in China are changing everything to electronic banking that they will do away with banks altogether
This also allows the government to watch their citizens even more
Globally governments will try to pull this stunt of no cash..
https://youtu.be/-BvdxbasIcw
People in China will never trust a developer to build for them in the future. Smart Chinese people will learn a valuable lesson from this history. Very sad to hear of this happening to the hard working citizens.
CCP is lies and promises all the way to the Central Committee , who then have no idea what is really going on in the country they are supposed to rule. Bureaucratic banditry is a way of life in communist countries . Its a system based on the lie of communism so people have to have a split personality to thrive.
It's China. We all know how corrupt they are over there. They're just like America at the very least.
Why are their faces being lightly blurred? Why not blur them completely or not at all?
This is just one of the important reasons why it is important that people have guns to protect themselves, their possessions and to MAKE SURE the law is upheld. Please do not think for one second America isn't going to go through anything like this as well. It's never really been about race. They just use that, party, and other tactics to divide us, to keep us from uniting, so that they can continue to keep stealing from us. It's rich vs poor. It's always been rich vs poor. It will always be rich vs poor. This is why the citizens of every nation NEEDS to bear arms because you wouldn't let anyone break into your home and steal your money, you shouldn't let ANYONE break into your account and steal it neither.
in the mean time, them chinese sheeple continue praising the CCP for doing a good job and that china is number 1. I say let them collapse while, we, the world watching. they deserve every bit of it…
the bigger they are the Harder They Fall I don't know whether to laugh or cry
its happening cause i wished so….
CCP: "OUR" money
china whole banking system, real estate market and economy is tanking and CCP has lost the confidence of majority of people. Plus the People's army are independent entities and are regional and might not respond to bejing's commands and they are full of corruption and faulty equipment and is one of reasons why they don't do anything about taiwan as they are bluffing.
What you sow so shall you reap.Your bad doings will not be forgived by any God or Nature in any ways.
How will the collapse of the banks in China affect the financial institutions in the rest of the world, the ripples have already been felt in China owned foreign banks through banks being not open for regular business.