Customers queue at banks in Yancheng for three days following rumour branch declined customer’s request to withdraw cash
from Reuters, via The Guardian:
Rural banks in China’s eastern city of Yancheng stacked piles of money in plain view behind teller windows to calm depositors queueing at bank branches for a third consecutive day, following rumours they had run out of cash.
According to residents of Sheyang county, panic began on Monday with a rumour that a branch of one local bank turned down a customer’s request for a 200,000 yuan (£19,500) withdrawal. Banks declined to comment and Reuters was unable to verify the rumour.
The affected institutions are tiny compared with the scale of China’s financial sector, and the rush for cash appears to be an isolated incident so far. Rumours found especially fertile ground there after a failure of three less-regulated rural credit co-operatives last January.
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