The China Banking and Insurance Regulatory Commission (CBRC), the country’s top regulator of the financial industry, announced on Friday August 26 via its official website that two banks in Liaoning Province were approved to enter bankruptcy proceedings. The two banks are Liaoyang Rural Commercial Bank and Liaoning Taizihe Village Bank. The announcement is tantamount to officially declaring the bankruptcy of the two grassroots banks.
China’s village and town banks have recently plunged into a series of crises, to the extent of bank runs. As the most grassroots financial institutions, they are often directly dealing with less urbanized residents in the vast rural areas, rendering the banks’ operations highly related to the stability of the Chinese society.
According to a publication of the People’s Bank of China, in July, Shenyang Agricultural and Commercial Bank had already completed the takeover of business branches, employees and deposits from the two banks.
Source: Central News Agency (Taiwan), August 26, 2022