Officials in the Chinese province of Henan said on Monday that they will start paying, first on behalf of several rural banks, funds from some customers that have been frozen, in an attempt to ease the anxiety among depositors that has led to rare protests in the country. Weekend.
Payments will be made in batches, with the first due on July 15, the local banking and insurance regulator and the financial regulator of Henan province said in a joint statement.
On Sunday, about 1,000 people gathered outside the provincial branch of the Chinese central bank in Henan’s capital, Zhengzhou, to demand action.
In April, several banks in Henan froze deposits withdrawn from Chinese nationals. Chinese media reported that the frozen deposits could be worth up to $1.5 billion. A fraud investigation is ongoing.
Police said they detained some suspects and froze funds linked to the disappearance of the warehouses, according to an official statement published Sunday night.
Henan police said the suspects were able to effectively control several banks in the province through a group company, according to the notice posted on an official WeChat account.
The criminal group used third-party financial product platforms and a company they set up to collect deposits and sell other financial products. They then made fictitious loans as a way to illegally transfer the funds, the statement said.
Payments will be made to select customers of Yuzhou Xinminsheng Rural, Shangcai Huimin, Zhecheng Huanghuai and Kaifeng New Oriental Rural banks from July 15 on behalf of creditors, the financial authorities of Henan said in the statement.
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