Depositors at several banks in China have been worried of losing money after they cannot withdraw money from these financial institutions. The Chinese regulator explained that they have been under investigation.

As reported by Apollo News, a large number of depositors at six local banks in Henan and Anhui provinces have found that they are unable to withdraw money from these Chinese lenders.

These are four rural banks and two urban banks.

The China Banking and Insurance Regulatory Commission said that these banks are involved in illegal fundraising.

The incident started a month ago when a woman named Bai from Henan was unable to withdraw hundreds of thousands of yuan deposits from three local banks. She waited for nearly a month but still could not withdraw the money.

Bai said that she deposited more than 800,000 yuan savings from her parents and herself into three local village banks instead of four major banks in Henan. The village lenders offered higher interest rates. When she wanted to withdraw money on April 19, the banks gave notice of “system maintenance.”

When Bai joined a WeChat group to complain about her situation, she found that many depositors reported the same problem from April 18. The depositors could not make deposits or withdrawals online.

The three village banks mentioned in Henan are Xinminsheng Rural Bank in Yuzhou City, Shangcai Huimin Rural Bank in Zhumadian City, and Tuocheng Huanghuai Rural Bank in Shangqiu City.

On May 6, Xinminsheng Rural Bank issued an announcement, saying it suspended external business in cooperation with Covid epidemic prevention and control work.

Subsequently, several other banks were exposed. They announced the suspension of online and mobile banking services on the grounds of a “system upgrade”.

These banks include New Oriental Rural Bank in Kaifeng City, Henan Province, Xin Huaihe Rural Bank in Bengbu City, Anhui Province, and Xin Huaihe Rural Bank in Huangshan City, Anhui Province.

Many people deposited money in these banks and even other banks began to worry about the safety of their savings.

Due to rising public opinions, the China Banking and Insurance Regulatory Commission were forced to give its explanation on May 18.

The commission representative said: Henan New Fortune Group, a shareholder of four rural and urban banks in Henan, absorbed public funds through internal and external collusion. The firm is suspected of illegal crimes, and the public security agencies have opened an investigation.

They claimed that all related businesses in the four involved banks are “protected by law”.

However, the statement of the commission did not mention the situation of the two banks in Anhui Province.

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