Jiangsu Sheyang Rural Commercial Bank Run

Jiangsu Sheyang Rural Commercial Bank, located in a branch of Yancheng Environmental Protection Industrial Park, suffered a run of nearly 1,000 people. It is understood that this was caused by a rumor that Sheyang Rural Commercial Bank was going to close down, which was widely circulated among the people, thus triggering a wave of bank runs.

"Jiangsu Sheyang Rural Commercial Bank was reported to have closed down, which led to a run" triggered more than 1370 related news reports in just four days, and nearly 7,000 related news reports in Weibo. Domestic and foreign financial media, mainstream media and urban media have given comprehensive reports and in-depth analysis. Many financial practitioners and researchers said that the lack of financial ecological stability in rapidly urbanized areas exposed behind the run needs attention.

In China, banks are regarded as implicit guarantees with government credit. However, the bank run of Sheyang Rural Commercial Bank shows that the risk prevention and control of rural financial institutions in China needs to be strengthened, which also makes the outside world generally worried about the risks of China's financial system.

On the 26th, "China News Network" pointed out that the rumor of "bankruptcy" triggered a run on thousands of people, forcing rural banks to reflect on risk management. Due to the inherent shortcomings of small scale and weak anti-risk ability of rural banks, it is necessary to strengthen comprehensive risk management, recognize operational risks, continuously improve their own risk management ability, and always insist on preventing risks in the first place. After all, only by ensuring the sustainable development of rural banks can this new thing survive and provide healthy and stable financial services for the rural economy.

"Guangzhou Daily" believes that: In fact, the run caused by rumors is not terrible, and the credit "run" is the biggest crisis for banks. However, there is a trend that some banks abuse this credit for personal gain. For example, in recent years, banks "disrespect the poor and love the rich", and their services to small and medium depositors are not in place. In order to make a profit, many banks have launched various so-called wealth management products in recent years, but they promote their high returns for customers and ignore their high risks.

The People's Daily Online-Sheyang Rural Commercial Bank's run-off incident caused great concern.