This banking problem is because a lot of previously obscure and small regional banks have been running a ponzi-scheme & other scams and it's finally coming to fruition.
It's not a bigger national banking failure but the ripples of corruption and con men who were offering insane interest rates and rates of returns on deposits.
This is due to the rise of internet banking where the regional banks were suddenly able to market services to other regions of China where they were previously isolated to small areas. Someone found a way to run a ponzi-scheme and reach out to a lot of areas of China to fund it, and now a lot of people have been left hanging.
If anything, this is going to cause Beijing to crack down harder on financial crime and it also puts the main competitor to Xi Jingping in a bad light because he was championing some of these new fangled banking and internet commerce.
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