Second branch of Chinese bank swamped as depositors pull cash
Depositors rush to another outlet of the lender in Yancheng hit by rumours over its solvency
A bank run in Yancheng spread to a second branch of the Jiangsu Sheyang Rural Commercial Bank yesterday, forcing the mayor to assure depositors that the institution was fully backed by the government and their money was not at risk.
Dozens of depositors, most of whom are senior citizens, flocked to a branch in Sheyang county, after they heard that the rural lender was not able to repay their money.
It was the third consecutive day the state-owned lender faced a run on its branches, although officials insisted they had enough funds to meet withdrawals.
"It is a sheer rumour," a bank official shouted at the depositors at the gate. "You don't have to withdraw money now … your deposits are safe."
It was a sheer rumour. You don’t have to withdraw money now
The local government deployed dozens of people including security guards, township cadres and police to maintain order while Yancheng mayor Wei Guoqiang arrived at the outlet in the afternoon in an apparent attempt to calm worried depositors.
"I assure you the bank will be operating as normal today, tomorrow, or in three years," Wei told the depositors.
