More problems have occurred for Chinese bank depositors. In the latest development, they complained that many rural banks in Henan province have manipulated system data and even erased the deposits of customers.
Meanwhile, the problem that customers can only make deposits on their bank card accounts and cannot withdraw money from them has spread to major state-owned banks.
On July 5, Weibo influential user Zhang Jie Watch, a Beijing lawyer, forwarded a message from the depositors of Henan rural banks asking for help.
The depositors complained that they couldn’t log in to all applications of their bank accounts, and their electronic card data had also been cleared. They questioned if the banks would take away the money of the vast number of depositors now.
Zhang Jie Watch responded that the depositor’s accounts cannot be seen now. The problem is that the depositors’ and the banks’ transactions are carried out online, unlike before when there were vouchers and receipts. Therefore, if the depositors’ money in the system is gone, the problem is severe because how to collect evidence is a big problem.
The lawyer claimed that the relevant banks are becoming more and more terrible. Erasing customers’ deposits directly from the system is more ruthless than curbing them from withdrawing cash.
He warned that this kind of action would bring about security troubles for China’s entire financial system.
The scary thing is that the crisis is not limited to small and medium banks.
On July 6, there were reports that many depositors could not withdraw money from their bank cards though they could still make deposits on their accounts.
A video on social media showed that a bank’s service desk was crowded with customers who came to handle their locked cards. One said he waited more than two hours to get it done.
The banks explained that they are trying to prevent money laundering crimes or illegal transactions.
Twitter account, namely Ma Ju, revealed on July 7 that the suspension of bank card payment functions spread to major state-owned banks, including the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, and China Construction Bank. The areas involved include Guangdong, Fujian, Anhui, Zhejiang, Jiangsu, Shanghai, and Hunan provinces.
Another Twitter user replied that if this incident spreads across the country, it would be a big event.
Dr. Xie Tian is a professor at the University of South Carolina Aiken. In a recent interview with “China Watch,” he said that the frequent occurrence of such phenomena would make Chinese people lose confidence in banks, and more and more people would run on banks.
Xie Tian pointed out that the communist regime in China has printed too much money, and the yuan is weakening. Coupled with a deteriorating economy, many Chinese banks could default on their loans.
He said that yuan deposits would soon turn into a pile of waste paper.