PBOC, CBIRC Probe Rural Banks Over Service Disruptions

Customers of many local banks under its control said their online accounts with billions of yuan in funds were frozen, prompting a new inquiry into a rural commercial bank in the central province of Henan that has been in the spotlight of authorities for some years.

According to a statement from the central bank and a report by state-owned broadcaster CCTV, the People’s Bank of China (PBOC) and China’s top banking regulator are investigating why several lenders stopped offering online services in April, leaving customers across the country unable to transfer funds out of their accounts.

As a result of the problems in Henan, the China Banking and Insurance Regulatory Commission (CBIRC) is conducting a broader review of rural banks’ cross-regional activity, according to sources familiar with the situation.