Big Bank Scam In China Has Exposed The System Of Regulation In The Country – China Bank Scam

A big bank scam in China has exposed the system of regulation in the country. This case is being described as the biggest financial scam of the country till date. Last weekend the victims of this scam took to the streets. Dozens of people were injured in unidentified attacks on protesters on Sunday. Since then the attention of the world has gone to this incident.

Thousands of people from Henan and Anhui provinces have become victims of this scam. Four banks were involved in the scam, who deposited money from people by luring them to pay more interest. People deposited thousands of rupees in these banks. After the scam was exposed, when thousands of victims continued to protest on the streets, after that the Chinese government has lost its sleep. The China Banking and Insurance Regulatory Commission (CBIRC) has issued two statements in this matter. Compensation has been announced to the people who suffered the loss. But the victims are not satisfied with that.

A woman with the surname Hong told the Hong Kong-based newspaper South China Morning Post – ‘The government announcement has not solved the problem. We should be given the complete package. If the government of Henan province does not have money, the central government should do so. Failure to do so will result in loss to the depositors. Hong’s amount of eight lakh 60 thousand Yuan (one lakh 28 dollars) has been sunk due to the scam.

Another depositor named Wang, who lives in Zhengzhou, told the same newspaper on Tuesday that government officials had sent most of the depositors back to their homes. The authorities took this step after some people in the crowd were found to be Corona positive. Some people were also taken into custody by the police there. Wang’s amount of three lakh Yuvan has been sunk.

According to the details revealed, the four banks contacted the people through third party agencies. They were promised interest ranging from 4.1 to 4.5 per cent. Whereas the government interest rate in China is only 2.75 percent. This scheme was running for five years. During this time people often withdrew their money. But recently the systems of banks became non-responsive. Then the ears of the depositors stood up.

According to London-based economic forecasting company Anodo Economics, China has powerful hardware and software to operate the banking system. Therefore, for the time being, he will control the operation of rural banks. But the way the banking system is functioning can lead to serious problems in the long run.

A man with the surname Zhang, living in Jiangsu province, invested 50 thousand yuan in a scheme of scam banks in December 2020 in the hope of getting 4.5 percent interest. He told the South China Morning Post- ‘Interest is a far cry, now even if the government gives my 50 thousand youths, then I will feel that I have been favored.’ Six lakh 65 thousand youths have been looted in the scam of a woman named Xi. He said- the need has been thoroughly investigated, so that transparency in banking can be increased.

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A big bank scam in China has exposed the system of regulation in the country. This case is being described as the biggest financial scam of the country till date. Last weekend the victims of this scam took to the streets. Dozens of people were injured in unidentified attacks on protesters on Sunday. Since then the attention of the world has gone to this incident.

Thousands of people from Henan and Anhui provinces have become victims of this scam. Four banks were involved in the scam, who deposited money from people by luring them to pay more interest. People deposited thousands of rupees in these banks. After the scam was exposed, when thousands of victims continued to protest on the streets, after that the Chinese government has lost its sleep. The China Banking and Insurance Regulatory Commission (CBIRC) has issued two statements in this matter. Compensation has been announced to the people who suffered the loss. But the victims are not satisfied with that.

A woman with the surname Hong told the Hong Kong-based newspaper South China Morning Post – ‘The government announcement has not solved the problem. We should be given the complete package. If the government of Henan province does not have money, the central government should do so. Failure to do so will result in loss to the depositors. Hong’s amount of eight lakh 60 thousand Yuan (one lakh 28 dollars) has been sunk due to the scam.

Another depositor named Wang, who lives in Zhengzhou, told the same newspaper on Tuesday that government officials had sent most of the depositors back to their homes. The authorities took this step after some people in the crowd were found to be Corona positive. Some people were also taken into custody by the police there. Wang’s amount of three lakh Yuvan has been sunk.

According to the details revealed, the four banks contacted the people through third party agencies. They were promised interest ranging from 4.1 to 4.5 per cent. Whereas the government interest rate in China is only 2.75 percent. This scheme was running for five years. During this time people often withdrew their money. But recently the systems of banks became non-responsive. Then the ears of the depositors stood up.

According to London-based economic forecasting company Anodo Economics, China has powerful hardware and software to operate the banking system. Therefore, for the time being, he will control the operation of rural banks. But the way the banking system is functioning can lead to serious problems in the long run.

A man with the surname Zhang, living in Jiangsu province, invested 50 thousand yuan in a scheme of scam banks in December 2020 in the hope of getting 4.5 percent interest. He told the South China Morning Post- ‘Interest is a far cry, now even if the government gives my 50 thousand youths, then I will feel that I have been favored.’ Six lakh 65 thousand youths have been looted in the scam of a woman named Xi. He said- the need has been thoroughly investigated, so that transparency in banking can be increased.