Closet_Gamer
Thinks s/he gets paid by the post
So this is an interesting -- and disconcerting -- article.
Apparently a few Chinese banks have gotten themselves in a bad spot and are refusing to allow customers to withdraw money. Led to protests and an ugly clash with the police.
Small banks but still disconcerting. Particularly as two sizeable Chinese real estate firms have now defaulted on loans.
China has many tools to paper this over and won't have concerns about moral hazard, etc but bank runs can spread like a grass fire. If you're a citizen in Beijing and you start hearing that people can't get money out of the bank and the government just literally beat them into submission, may you starting quietly withdrawing some of the money from your bank...
A Chinese debt/bank crisis would have huge global ramifications.
https://us.cnn.com/2022/07/10/china/china-henan-bank-depositors-protest-mic-intl-hnk/index.html
Apparently a few Chinese banks have gotten themselves in a bad spot and are refusing to allow customers to withdraw money. Led to protests and an ugly clash with the police.
Small banks but still disconcerting. Particularly as two sizeable Chinese real estate firms have now defaulted on loans.
China has many tools to paper this over and won't have concerns about moral hazard, etc but bank runs can spread like a grass fire. If you're a citizen in Beijing and you start hearing that people can't get money out of the bank and the government just literally beat them into submission, may you starting quietly withdrawing some of the money from your bank...
A Chinese debt/bank crisis would have huge global ramifications.
https://us.cnn.com/2022/07/10/china/china-henan-bank-depositors-protest-mic-intl-hnk/index.html