China extends compensation for Henan banking crisis victims to 250,000 yuan, 2 more officials probed

Savers with deposits of up to 250,000 yuan (US$37,000) at four rural banks in Henan province and one in Anhui will receive compensation on Monday

Chinese regulators also confirmed on Friday that another two Henan officials are under investigation for disciplinary offences

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Savers with deposits of up to 250,000 yuan (US$37,000) at four rural banks in Henan province and one in Anhui will recieve compensation from Monday. Photo: Handout

Published: 6:30pm, 5 Aug 2022

Financial authorities in Henan and Anhui provinces have announced a fourth round of repayments to victims of the rural banking scandal, although many customers are still waiting for previously promised compensation.

Individuals with deposits between 150,000 yuan and 250,000 yuan (US$37,000) at four rural banks in Henan province will be repaid on Monday, said a joint statement from the local branch of the China Banking and Insurance Regulatory Commission (CBIRC) and the provincial financial supervision bureau.

The statement on Friday also mentioned that repayments to depositors with savings under 150,000 yuan will continue, having initially started from 50,000 yuan last month.

Authorities in Anhui’s Bengbu city issued a similar statement.

Since April, deposits estimated at around 40 billion yuan (US$6 billion) at Yuzhou Xinminsheng Village Bank, Shangcai Huimin County Bank, Zhecheng Huanghuai Community Bank and New Oriental Country Bank of Kaifeng in Henan province and Guzhen Xinhuaihe Village Bank in the neighbouring Anhui province have been affected.

Police in Henan have arrested a number of suspects allegedly involved in a “complicated” cash crisis involving rural banks, while three financial officials were placed under investigation for “suspected severe disciplinary violations” at the end of last month.

On Friday, Chinese regulators confirmed another two Henan officials were under investigation for disciplinary offences, namely Guan Qifeng, the deputy director of the Henan Rural Credit Union, and Wang Xianjun, an inspector at the Xinyang branch of the CBIRC.