Enping financial crisis

The Enping financial crisis occurred in Enping, Jiangmen, Guangdong in China after nationwide bank runs in the aftermath of the 1997 Asian financial crisis [when?] brought a pattern of fraud to light in multiple of the city's banks.

## Fraud

Local officials, as well as the bank managers at the local China Construction Bank (CCB) branch, had illegally allocated funds to their own projects.[1][2] Other banks involved included the other three of the "big four" Chinese banks: the Bank of China, the Industrial and Commercial Bank of China, and the Agricultural Bank of China.[3] The banks lost US$509.5m (CN¥ 3,600,000,000 (US$509m) and HK$3,680,000 (around US$0.5m)) due to the fraud,[3] with the CCB branch alone estimated to have lost US$480m.[1]

## Aftermath

Losses incurred by the scandal cost the People's Bank of China (PBOC) RMB 6.8b.[4] As banks pulled out of Enping, residents were denied access to financial services into the early 2010s.[5][6]

## References

1. ↑ 1.0 1.1 Mufson, Steven (22 November 1997). "FAITHFUL CHINESE SAVERS KEEP BANKING SYSTEM AFLOAT". Washington Post. ISSN 0190-8286. https://www.washingtonpost.com/archive/politics/1997/11/22/faithful-chinese-savers-keep-banking-system-afloat/18350e18-e0d6-4ade-bca6-a1edac332704/. Retrieved 2020-06-22.
2. ↑ Zhu, Rongji (2013). Zhu Rongji on the Record: The Road to Reform: 1991–1997. Brookings Institution Press. p. 440. ISBN 9780815725183. https://books.google.com/books?id=eepbAAAAQBAJ&pg=PA440.
3. ↑ 3.0 3.1 Nolan, Peter (2008). Integrating China: Towards the Coordinated Market Economy. Anthem Press. p. 136. ISBN 9781843312383. https://books.google.com/books?id=wDQ6FUau1HIC&pg=PA136.
4. ↑ Cousin, Violaine (2008). Banking in China (2nd ed.). Palgrave Macmillan. p. 48. doi:10.1057/9780230306967. ISBN 978-1-349-32344-9. https://books.google.com/books?id=BCSGDAAAQBAJ&pg=PA48.
5. ↑ https://www.afdi.org.cn/files/f3532.pdf [bare URL PDF]
6. ↑ World Bank (2010-12-07) (in en). Reducing Inequality for Shared Growth in China: Strategy and Policy Options for Guangdong Province. The World Bank. p. 135. doi:10.1596/978-0-8213-8484-8. ISBN 978-0-8213-8484-8. https://documents1.worldbank.org/curated/en/314871468261892004/pdf/588460PUB0Redu101public10BOX353816B.pdf.

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