23 August 2019

Police detain ‘rumormonger’ as run on bank ends, FT says

A three-day run on a small Chinese bank ended as swiftly as it began after government officials and banking executives came out in force to assure depositors that their money was safe, the Financial Times reported Thursday. The China Banking Association declared Wednesday that the finances of Jiangsu Sheyang Rural Commercial Bank, the lender hit by the bank run, were in good shape and that it faced no risk of collapse. Police detained the person whom they believe started the rumour, the report said. The bank run was sparked by a story that the lender had turned down a customer’s request to withdraw 200,000 yuan (US$32,200), according to Reuters.

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