A shocking video has emerged on social media showing that tanks in China are being used to protect crisis-hit banks. The video shows a long queue of tanks standing in front of a bank in China to prevent people from entering the branch.
"CCP tanks on the street again this time protecting Banks (possibly Rizhao, Shandong Province). This is because the Henan branch of the Bank of China declaring that people's savings in their branch are now 'investment products' and can't be withdrawn," said a Reddit user.
Banking Crisis In China
The accounts at Yuzhou Xinminsheng Village Bank, Shangcai Huimin County Bank, Zhecheng Huanghuai Community Bank and New Oriental Country Bank of Kaifeng in Henan province and Guzhen Xinhuaihe Village Bank in the Anhui province have been frozen since April 18, according to South China Morning Post.
Henan Xincaifu Group Took Control of Five Rural Banks
Citing an official of the China Banking and Insurance Regulatory Commission (CBIRC), the report also stated that Henan Xincaifu Group had taken control of the five rural banks through "internal and external collusion" and "illegally" attracted deposits from savers.
The official also clarified that the company had no interests but it covered up its illegal activities by tampering with business data.
The official also referred to some of the protests over the issue. In one of the demonstrations earlier this month, protestors were attacked but the official claimed that the incident was handled in accordance with regulations and laws.
The CBIRC official told SCMP that the State Council approved a special purpose debt quota of 103 billion yuan (US$15.2 billion) to inject liquidity into small banks in Liaoning, Gansu, Henan and Dalian.
It's also being claimed that local special bond issuance plans are necessary in the near future and the official believes that the allocation of all 320 billion yuan will be completed by the end of August.