Author: Ming Shuyuan official account: Ming shuzatan wechat id:laomingdashu
1) Since April 2022, depositors of five rural banks in Henan and Anhui have been unable to withdraw money at maturity, and users have begun to protect their rights online and offline. According to media reports such as Sanlian Life Weekly, the incident involved hundreds of thousands of people across the country, with a huge amount of money. If this matter is not handled properly, it will not only damage the legitimate rights and interests of hundreds of thousands of depositors, but also affect social stability, and even impact the trust between the people and government departments.
2) According to information circulated on the Internet and media reports, on July 10, thousands of bank depositors from all over the country protested outside the Zhengzhou branch of the people’s Bank of China. Later, they clashed with the police and unknown people, and some depositors were injured. This incident once again stimulated the sensitive nerves of netizens. At present, the details of the conflict are not clear, but many netizens believe that it is wrong for people defending their rights to be treated violently. The slight carelessness of this incident may change from the contradiction between depositors and village banks suspected of violating laws and crimes and the actual control subjects behind them to the contradiction between depositors with damaged interests and the party and the government.
3) The conflict between depositors, police and unidentified persons on July 10 has been the second vicious public opinion event triggered by the Henan Rural Bank incident. Before that, the staff of relevant departments in Henan gave a red code to the health code of the people safeguarding their rights without authorization, which caused a great disturbance. The matter has been severely criticized by all parties, and the person responsible has been dealt with seriously.
4) On the evening of July 10, the official website of Henan local financial supervision bureau announced in the evening, “the relevant heads of Henan banking and Insurance Bureau and Henan local financial supervision bureau said that in order to safeguard the legitimate rights and interests of the masses, the relevant departments are speeding up the verification of the customer capital information of the four rural banks and formulating disposal plans, which will be announced in the near future. Once again, remind relevant customers to complete the registration as soon as possible.” It seems that this matter is moving towards a little solution. At present, all parties pay close attention to this disposal plan.
5) For the Henan Rural Bank incident, the most important thing at present is to make every effort to protect the legitimate rights and interests of depositors, and the core is to help depositors recover losses. At present, the relevant departments need to draw conclusions according to law and regulations based on facts about whether the funds depositors invest in these rural banks are deposits or financial products, or involve illegal fund-raising, financial fraud, etc. If there are more complex cases, the police need to communicate with the public in time to calm everyone’s mood. However, in any case, as the vulnerable party and the actual victim, the relevant departments need to unite to help them recover their losses as much as possible in a variety of ways and ways within the framework of the rule of law.
6) According to police investigations and media reports, Lu Yi, the actual controller of Henan new hope group, used various entities to actually control Xuchang rural commercial bank through a complex equity structure, and the latter initiated the establishment of four rural banks involved. Its core involves using various shell companies to obtain funds from rural banks, or illegally intercepting the funds deposited by depositors to rural banks for other purposes. New hope group and its actual controller Lu Yi, as well as all the personnel who cooperated with Lu Yi in illegal and criminal activities, were the culprits of the Henan Rural Bank incident, and should be severely punished by the law.
7) The lax supervision of the local regulatory authorities in Henan over the illegal and criminal activities of Lu Yi and others, and even some personnel suspected of corruption and other illegal and criminal activities, are the important reasons for this incident, which also requires reflection and accountability in accordance with the law and regulations.
8) The relevant departments of the state allow the establishment of village banks, mainly to better serve the “three rural issues”, but the criminals “hang sheep’s head, sell dog meat”, do not hesitate to pay high interest to collect deposits, and turn the village banks into their own “money cans”, which is very hateful. In this process, relevant internet platforms have contributed to the spread of rural banking business, which was originally limited to local business, to the whole country, which is an important driver of risk diffusion. Regulators also failed to detect risks, give early warning and intervene in a timely manner in the context of the continuous evolution of technology and industry.
9) According to the data of China Banking and Insurance Regulatory Commission, by the end of 2021, the number of rural banks nationwide was 1651, accounting for about 36% of the total number of banking financial institutions in the country. Are the risks and problems of such a large number of rural banks limited to the four in Henan? It is expected that the regulatory authorities will find out and investigate the possible risks, hidden dangers and even illegal and criminal activities of rural banks across the country through this incident, so as to find out the problems as soon as possible, so as to protect the legitimate rights and interests of depositors and maintain social stability.
10) In the past few years, various illegal and criminal incidents have emerged in an endless stream in the financial sector. From P2P to all kinds of routine loans, it has brought great harm to the vital interests of the general public and endangered the stability of Chinese society. It is expected that financial supervision can be ahead of law breakers and criminals, and timely early warning and demining. At the same time, the general public also needs to improve their basic ability to identify financial risks. They must not be tempted by the so-called high returns and security guarantees, and eventually become victims.
At present, the international and domestic situations are very complex, and netizens’ emotions are easily ignited by emergencies. Chinese society must maintain stability in order to successfully achieve the goals of economic and social development, and to resist and overcome the containment and suppression of the United States.
In order to maintain stability in Chinese society, the staff of governments at all levels should not forget their original intentions and be responsible. We should solve problems in a practical and realistic manner and resolve various risks and contradictions. Don’t let small things drag on big things, which will lead to escalation of contradictions and handover of responsibilities. This is one of the potential hidden dangers affecting the current social stability in China, which cannot be avoided.