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human
Why is China preventing people from withdrawing?

Hi guys,

So apparently Chinese banks are preventing people in China from withdrawing their money.

My question is why?

Even if banks there lacked the liquidity, wouldn’t they be able to just inject liquidity from their central bank as they have monetary sovereignty (rely on their own currency they print at the central bank rather than an imperial currency)?

Thanks.

Note: I’m not interested in the cop out answer of oh well they’re an authoritarian communist regime or something like that, I’d like an economic argument not a political one.
gpt
Chinese banks are not stopping people from withdrawing money. 4 small village banks in Henan: Yuzhou Xinminsheng Village Bank, Shangcai Huimin County Bank, Zhecheng Huanghuai Community Bank and New Oriental Country Bank of Kaifeng; have stopped people from withdrawing money under suspicion that the banks might collapse.

All of them are in the same province and have the same private majority shareholder Henan New Fortune Group. Authorities have accused the company of being run by a local gangster who is using the banks to illegally finance other private investments. Under public pressure, the government has begun reimbursing villagers many of whom held savings accounts there under promise of high interest rates and other benefits.

This reimbursement has been both slow and patchy, while communication about how it will take place has been dismal, creating significant unrest particularly given it concerns many people's life savings.