Shadow Banking

Rural co-operatives were set up to channel funds to farmers who were unable to secure loans from big state banks, but many shifted into riskier forms of lending. Photo: Xinhua

Rural mini-bank run highlights perils of deregulation in China

Depositors wanting to withdraw money from a rural bank in prosperous Jiangsu province before the Lunar New Year holiday found the doors locked, their money gone and employees offering a simple explanation.

"We have lent out all the money. There is none left," an employee said.