HONG KONG :Financial authorities in China’s Henan province said on Friday they would repay more depositors to try to contain damage from a rural banking scandal.
Deposits worth at least $1.5 billion at a handful of small lenders have been frozen since April in what authorities have said was a complex scam that sparked protests and renewed concerns about the 4,000 small banks across China.
Authorities started repaying depositors on July 15 to try to shore up confidence, following investigations by authorities and arrests of suspects.
Financial regulators in Henan said they would start another round of repayments from Aug. 22 to clients of four rural banks whose deposits have been frozen.
Individuals with deposits of between 350,000 yuan and 400,000 yuan ($51,344-$58,679) will be repaid, the Henan branch of the China Banking and Insurance Regulatory Commission and the provincial financial bureau said in a joint statement.
Authorities in Anhui province’s Bengbu city issued a similar statement, saying they would start repaying clients at a bank there from the same date.
Authorities have said the scam involved a private financial group with stakes in the lenders that had faked data by colluding with bank staff and siphoning off funds illegally.
($1 = 6.8167 Chinese yuan renminbi)
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