Another Chinese Lender Bailed Out After Bank Run

Yichuan Rural Commercial Bank, a lender operating in the central Henan province, has become the latest Chinese bank to be bailed out by the government this year. The small financial institution, which has around 30 branches only in the Yichuan county, experienced a bank run sparked by rumors that its top management was in trouble with the law and mounting speculations the bank was on the brink of insolvency.

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Bank Run Highlights Increasing Depositor Anxiety

Hundreds of depositors gathered at Yichuan Bank’s offices this week to retrieve their savings before the feared collapse and found they were unable to withdraw their money. Meanwhile, authorities confirmed on Wednesday they are investigating the former chairman of the bank and its biggest stakeholder, Kang Fengli, for suspected corruption, Reuters reported. Police also arrested a woman, a local resident, for allegedly…