Wearing surgical masks to cover their faces, dozens of people demonstrated outside a branch office of China’s central bank in the landlocked province of Henan early this month to demand their savings back. They’re among thousands of depositors in China that protesters say are still campaigning for compensation after last year’s rural banking scandal saw their accounts frozen. “America’s Silicon Valley Bank customers got their money back in three days.
Experts say this is because the government does not want to set a precedent as it cannot afford to cover the deposits of all of the nation’s troubled smaller banks, if they also go under. The central government does not want to “send the message out that if you’ve got a provincial bank with a problem, and there’s people protesting, Beijing will simply hand out cash,” said Andrew Collier, Hong Kong-based managing director of Orient Capital Research.
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