Customers of four rural Chinese banks that froze depositors’ accounts, sparking angry protests, will receive a second round of repayments from next week, authorities said.
Financial regulators in Henan province said on Thursday that individuals with deposits of up to 100,000 yuan ($14,800) will be repaid.
Henan authorities started the first round of repayments on July 15, following widespread protests from angry depositors whose funds have been frozen by the four lenders.
The Henan branch of the China Banking and Insurance Regulatory Commission and the provincial financial bureau issued a joint statement announcing the repayment round.
The Chinese banks’ scandal spooked depositors and could risk broader contagion, rating agency S&P Global warned last week.
Up to 400,000 customers were unable to withdraw money from the four banks in Henan and two other banks in Anhui province that also froze assets held by depositors.
- Reuters, with additional editing by George Russell