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IPFS News Link • China

Second Bank Run In Two Weeks As China's Banks Are Caught In A Self-Destructive "Doom Loop**

• arclein

To avoid an almost instant death, Yingkou had no choice but to engage in what we have hence dubbed a self-destructive "doom loop: to help repair the damage and to keep the deposits from being pulled, the bank hiked its already high deposit interest rates to entice depositors. Alas by doing so, the bank - which can not possibly find investing opportunities to offset the higher deposit rates - has just accelerated its eventual insolvency.

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