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 Imagine a situation where you have worked for your money and put in the bank but at the end of the day can't access them simply because your government decided that it would be the best fund to cater for development of the country!! That's the rude awakening citizens of the Henan village of China got.
 
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In a bid to scare protesters away, People's Liberation Army tanks were put in front of the banks as the protesters were reluctant to leave the bank premises, furious that the bank had decided to turn their savings to "government investment".
 The use of tanks is quite similar to the case of the June 4, 1984 incidence at Tiananwen Square where students where killed while protesting for better freedom and democracy.
With such a big issue trailing the government and banks, it would be safe to say that they have nothing to offer and are no longer trustworthy and once this is lost, citizens tend to look for other sources.
 
 This was probably what Satoshi saw and decided to create Bitcoin, because the integrity of banks will be compromised as technology evolved and they  will try to cover all their tracks.
 With China not in support of Bitcoin hence individuals would have switched over to it, so how do they manage to guard against such an incidence repeating itself? https://www.india.com/business/video-china-deploys-tanks-after-top-bank-declares-peoples-money-investment-products-5526988/

This is how most custodians of any assets make their money - they lend out your assets to others.

It's not limited to banking as it's done by most stock exchanges and billions too.

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The tanks are probably more unique to China but a lot of countries have militarised police.

Ongoing discussion about this since two days ago on this forum:

China banka scams shows importance of financial freedom with bitcoin... (https://bitcointalk.org/index.php?topic=5407150.msg60605271#msg60605271)

You can lock this thread and post on the thread created about this same issue of Henan Bank and how they do not release customers money in bank that led to protest.

They make profits out of your funds only and in case of any issue they can even seize your funds also and this is case with CEX in crypto market also and it's alarm for us to be safe.

China has past habit of suppressing these protest through tanks and Tiananmen Square is still remembered by world.

Yeah we need to have the discussion in single thread only to have the different opinions from members so yes you can lock this topic and contribute in the thread mentioned above.

Henan bank crisis came to know in mid april 2022 when three rural banks in china's Henan province stopped online transactions and freeze their account. Now Chinese's tank are scaring people to protest and main reason for this is greed and corruption

That was probably why Satoshi created bitcoin but seems he missed one thing, it was gonna turn into centralized from decentralized. Some people like Elon Musk and companies like Binance have a huge influence on the bitcoin and the crypto market. When people trade and leave their currencies into exchanges and e-wallets, that old idea behind bitcoin is already broken.

Every time, the governments have higher control over people and society isn't going to resist. People happily use devices like Alexa in their house, pirated software, OS that is full of malware and trojans.

That's why Bank's dominance on the economy should end. The similar situation happened in India as well where the promoters of the bank lent money to a loss making company and the company couldn't pay off their loan. So the government had to step in and they are still trying to sell off the assets of the bank so that they can pay the depositors back.

This is the story of banks almost everywhere in the world. That certainly shows the importance of having the control over your own money!

Unfortunately, majority of the people still trust banks despite of this sad reality. They chose to go along with the centralized banks and entrust their life’s savings. They fail to realize that they are giving the banks to have full rights on their entire funds, leaving them clueless about the future of their money. Unlike bitcoin, you are the sole bank of your own money.

It is very disturbing to see that the Chinese leadership have never learned and are infact reverting back to much worse ways of handling their citizens than we saw before Xi Jinping. After first claiming that the savings products of these people were "investments" (which they may have been but they were marketed in a very manipulative way) they were starting to see a bankrun in other banks, which would have been even more devastating to the financial system of China and have now backtracked slightly by offering to cover, from state coffers, a certain proportion of the billions that were stolen by the individuals in charge of this company.

I guess if they've been vocal and has said this earlier to their customers, there could be a clarity on where the money went and these people will understand how their money was gone and will take time for its return.

Although, it's the usual thing that banks do for their depositors money but the sad part is that this is the people's money and they need it. Why they don't have a plan B on how they'll solve this.

They can do this through talks but well, this is China.

Oh the irony... People's Liberation Army is liberating people from the burden of having money. That wealth must've been too heavy to bear for these poor folks :D


Are they still protecting the bank 24/7? How much of "people's money" does this protection cost?

This is so fucked up. These people help to finance the army with their taxes. Now the army is helping to steal the rest of their money along with the bank that was there to protect their savings.

Yes, we could say that Bitcoin is really something ideal when it comes to future aspect but we know that not all people are really that fully aware on what it is and of course
they would most likely be sticking into something that they've been using through ages even though they are aware on that sad reality about banks and how they do make out
business but since there are no other place for them to store their fiat then we do really ending up on relying on these things despite of such issue or something like that.
We dont really have the full control and that risk would be always attached to it thats why we should really be wise on making decisions.

Banks always uses the money of their depositor either to reinvest it or to use it for lending purposes but the situation of this bank in China is alarming, why their central banks allow this to happen where in fact the regulations with the bank is very strict. Though this situation also happen in my country before, where the bank fully invested on a fixed asset which turns out to be a bad investment and force them to file a bankruptcy and stop the operation, although the depositor still able to get their funds after the help of the government.

banks indeed invest the funds of their depositors, however, they have several strategies to take care of the funds not to screw the money of their clients. and also, the funds should always be available to their clients. usually, they have certain allotment that goes to their investments. now, if the bank placed all the money to their investments, that's their responsibility to answer their clients. if the bank is having problem like what the situation in henan, then the depositor should cash out his deposits once they allow their clients to get their money. and just look for other saving options.

Henan Bank issue is a national disgrace. The Chinese bank regulating failed in their responsibility to prevent scam and protect the interest of depositors. The bank did not really use the money for any profitable investment but it is generally believed that the officials engaged in some corrupt practice. Currently, the Chinese government is investigating the officials of the bank and depositors have started receiving their money back. Bitcoin education is key for they adoption of these priceless digital currency. If people know the benefits or opportunities Bitcoin offers, these traditional banks would become obsolete.     

I suspect more of corrupt practices than failed investments because it is normal and general knowledge that these banks use our money for investment purposes most times forex trading.

It is a good response from the Chinese government quickly responding to refunding citizens money because money issues are very delicate like I would always say. The Chinese government frowns heavily at corruption and the bank officials if found guilty will pay a heavy penalty for it.

Regardless of the fact that the Chinese government is not responding to refund in people's money this incidence country boots do the arguments the need for you to be your own bank and exercise more of financial independence. Cryptocurrency is the future!

This is the problem with custodial services in finance. You trust them with your hard-earned money, but not only are they not keeping them, they are actually risking them. They are using their clients' money in order to earn. In the case of failure and they grow insolvent, they would implement measures such as freezing withdrawals. In case they're successful, they won't share with their clients their profit other than the promised interest which is even lower than the inflation rate. In case of bankruptcy, the insurance will pay their clients after years.

But before criticizing the banks for this, be mindful that this is also present in crypto.

If you don't like the banks, don't just Bitcoin; be your own bank!

This is not the first time that something like this happened.... there are several incidents where Banks worked with government agencies to raid people's safe deposit boxes... and where they confiscated the content of these safe deposit boxes.  ::)

So, you think it can only happen in corrupt 3rd world countries? Think again.... https://www.forbes.com/sites/steveforbes/2013/03/25/can-a-cyprus-like-seizure-of-your-money-happen-here/?sh=285b65c42506

Not the first, but the main issue is that it happened in China, I mean supposedly in top as far as world economy goes. And what is scary is that it seems this has the backing of Chinese government?

I mean it's a display of force, obviously, and how do the Henan Bank did it? they did just call the military and said "hey we need tanks here to disperse the people because we have used their money for other investment"?

Yes, they do tend to repay which is indeed an ethical thing to be done.

Henan: China to repay customers after mass bank protests (https://www.bbc.com/news/business-62130744)

This is the big cons on using up centralized services or trusting up certain institution specially when it comes to your own money.
There's always a tendency when it comes seizure or whatever actions they are tending to make which as a depositor ending up there's
nothing you could do about it.

Banks do this all the time, except that they can still give out account holders' withdrawal since they have some stash of cash in them. Either this particular bank doesn't have cash reserves or they really put communism to play. China is known for doing these kinds of stuff for years, and it no longer surprise me that it is still happening today. What's amazing is that more and more Chinese are kind of resisting these kinds of acts from the government, something that hasn't been done since the Tiananmen Square massacre.

Now we are on the verge of very unexpected events that will follow from China. No, it will obviously not be 2022, but definitely 2023/2024. Now the state, or rather the "celestials", are trying their best to hide, or at least disguise the growing and inevitable, powerful crisis of the Chinese economy. Yes, terrible consequences are not yet visible, so far it is possible to "hide" them, such as "investing other people's deposits, without coordination with the owners of the funds," and some others. But unfortunately, the flywheel of the crisis is gaining momentum every day, and when there are not enough resources to hide problems, this flywheel will simply crush what was once considered the most powerful economy in the world.

I'll just talk about a few signs that are sure to be noticeable. Such signs are characteristic of totalitarian regimes, and only them, because. they just have no other choice.
1. Increasing the capacities of the military-industrial complex
2. The total militarization of society, and most likely under the pretext "we have an enemy." Here, the truth is, the Chinese government will have to rack their brains to come up with a "realistic" enemy, because. the people of China are not North Korean sheep.
3. Massive legislative and enforcement decisions restricting freedoms - from the media to the availability of finance, and a rather sharp impoverishment of the majority of the population.

...and then the tension inside China will rise at a wild speed, the destruction of global mega-companies, the fall in industrial production, and much more... No, I'm not happy, because. this will lead to another global economic crisis, but here everything will be more complicated than the story about, for example, bubbles with dot-coms. Here the world economy will have to rebuild globally.

I don't see this bank doing anything diferent than any other bank or investment fund. Situations like this happened in the 2008 crash and are happening now as well as spculations hit a brick wall. But you kinda alow the bank to do that if you use it's services. I know of cases of banks going under and the people that lost their money with them having to wait for 20 years to get something back.

I beg to differ Sir ive gone through a few materials on this and from the info ive gathered this is more of a fraudulent/embezzlement case than investment. According to a Marxist column KST 01/08/2022 the police had been on the hunt for Sun Zhenfu a former VP of Xuchang rural commercial bank which sponsors or controls about 5 subsidiary rural banks of which henan bank is included he was wanted for serious economic crimes which has affected  about 400000 depositors. The China Banking Regulatory Commision(CBRC) has stepped in to do some refund due to the massive protest. There are also speculations that the Chinese Communist Party has a hand in whats happening because during this protest the Covid-19 health code of all the rural depositors turned red suddenly. and when this happens the person is being banned from public places... Although the Communist have come out to arrest those who tampered on the health code of the protesters none of them has been prosecuted. so its assumed that the Government has an idea of whats going on

I just feel for those consumers who have their funds stuck in that bank. Same case with Celsius and also the latest SOL hack. We don’t just simply put all of our eggs in one basket. This is why despite the reputation of the bank, I don’t trust them when it comes to storing my savings and assets. It’s better to store them into something which we have full control and custody like the hardware wallet.

This happens to almost all banks, they invest with consumer money, they provide bank interest 5% per year, but get bank interest more than 15% per year from borrowers, this is what makes many banks immediately go bankrupt when customers take all the money.

It's not a scam issue or anything like that. These are the first echoes of the approaching global crisis in China. We have already heard about major bankruptcies in the Chinese construction business. These are the harbingers... Construction companies and banks have fallen into the trap of inflating the construction bubble. They already have hundreds of billions of dollars worth of non-performing liabilities. The state will not be able to support them either, and everyone is well aware that soon enough this will bear its "fruits". At first, the stoppage of related industries, of a global nature - the production of concrete, building metal, and other things. This will lead to significant unemployment. And also a huge number of dissatisfied people who invested money in "their dream" - people will find themselves without money and without housing. This will lead to an increase in internal stress.
And then on the rise: unemployment => drop in living standards => inflation => fall in industrial production => and in a circle to the point of "explosion".

I'll make a prediction. Events of the next 6 to 12+ months will shine a new light on this. In a way that puts events into perspective and is intuitive for everyone.

At the moment, people are surprised by this and don't understand why this happened. But there is a reason for it. Which will become obvious later. It can be deduced from recent events and proposals that have been put on the table.

Isn't it odd that people promote savings in banks and investment fiat in an era where events like this are occurring in henan and around the world. Bitcoin maximalist. Or bank / fiat maximalist. Most of the discussion is defined by extreme polar opposites. Where we appear to lack a middle ground between the two.

Just like that? I think there's more to it because it's kinda impossible for them to just use the money of their customers without any twist like the money will be returned bigger but before they did it, better if they do some announcements first if their customers will agree to it or not, as some won't and will choose to withdraw their money and leave that bank because they are afraid of what can happen to their money soon.

Bitcoin on this country is also banned, I think is the reason why people there have no choice but to put their money in banks even if they know that there are risks that entails with it although there's also a risk bitcoin because of its volatility but what's good with it is that they have a full control of their money.

Well, knowing China, they are known to be great manipulator most especially with their own citizens. This is the reason why centralized banks should not be considered as the best place to put our hard-earned money because it will be used by them for their own motives in the long run. This Henan Bank should serve as an eye opener that banks will mostly create the same fate with this. As much as possible, we should have our own wallet with bitcoin because that's the only solution not to fall for the traps put in the banks.

China is having a ton of investment problems for the past few years. They have grown further then they should be believing that the money would keep coming in. But as we have seen, the world became a lot less financially free, meaning that the world didn't want to spend money on buying stuff from China like it used to, and china didn't get richer, and all those houses built to make the nation a better place, ended up not getting sold at all.

In the end, banks would have to switch money around in order to survive, maybe it was illegal, maybe it wasn't but it was unethical, in the end they have decided that it was the only way and they went for it, which caused a lot of trouble.

What happened in Henan could not be fully compared to what happened to Celsius or other hack crypto stories because traditional banks were institutions that were set by the state and the state should be able to protect customers correctly, but unfortunately it did not happen in China and almost It is also certain that in many countries where the government is very dictatorial, most people will always consider the bank as a safe place to save money because it is a mindset that has been instilled long ago

This has happened before and not just in China and it happens to banks all over the world. Banks are the only trust that people can trust, but unfortunately the bank is not the safest place. This is China and bitcoin is strictly prohibited here, people will have no way to store their wealth other than banks.

Bitcoin is the only solution for our wealth, hopefully bitcoin will soon get mass adoption so people can protect their own assets and no need for any centralized bank.

This is not uncommon at all. Banks will use the funds deposited by their clients in order to generate profit. Clients receive interest payments. I don't support these matters unless the clients are properly informed of the risks, but it's probably also true that the folks that deposit fiat into a bank are looking for stability, not investment returns.

The main issue I see here is that the banks and government in China are essentially one entity. Using funds for developmental purposes creates a conflict of interest. CCP is looking to expand their their country's reach thus if they were to put funds into projects that fail or get a negative ROI, the citizens are out of luck.

What did people think when they invested their money into a savings account? Banks just charge late fees or something and pay from there? Loans are an investment, meaning even if banks didn't end up investing into stocks or anything, your savings account money is used to give someone else a loan and that loan is for 5% rate to pay back whereas your savings interest is 1% or less.

This means that the bank makes a profit by using your money to give others loans, and yes there are defaults but very little which means that they still make a profit just from that. But they find it not enough so they end up putting a good amount of money into stocks this way.

This is not just for Henan bank alone, but also practiced by a lot of centralized banks worldwide. You invest your money in them, and then they will use your money too to make more money for the bank and apparently for their own interest too. This has been happening ever since, but I think China make it worst. Not surprising why they always make it to ban bitcoin because once people will adopt it, it will eventually stop their own modus because people will not trust the bank anymore and will all shift to bitcoin.

Banks are investing the money and its pretty normal but if you can’t access your money anymore then that is a big problem because banks should be more liquid and you should get your money any time you want especially if its just a savings account. Bank should not do this, the regulator should step in and ask the bank to bring bank the money of their clients, this is a red flag action for that bank, better to stay away if its still possible.

Very well said , that's a reality to all bank. They only use the money of the people to operate and earn a lot. The only things that can do to save our money is put  in our own vault. Less hassle and we can control it.

Thought its not that safe but I will also support this one since the banks is just giving a small amount of interest if you put your money with them and beside, it takes a lot of requirements just to open an account. Anyway, if this kind of bank that will not allow you to get your money back since they reinvest it into something else, that’s a big red flag and I agree that their central bank should take actions to protect the consumer. Better to go for a much bigger bank, and put your money there but of course don’t expect too much interest from them.

Yes and no. After the 2008 crisis, investment banking and commercial banking were separated, so yes, you can lend, but you cannot do whatever you want with it. Also, banks are limited in their lending and they have to pass certain tests (in US and EU) precisely to make sure they do not lend to the point that they cannot honour the deposits.

The situation as described is very clear: A bank has your funds, but you cannot withdraw them - that is in essence the definition of a bank going under (bankrupt). It does not matter if they say that it is going in "investment" or that is being used to save grannies from floods - you are able to get your money whenever you want from a typical account.

Now, the excuse of it being used for "government investment" does not make any sense. If it is used for "investment" then the depositaries should benefit from it. It is not usual to see the Chinese protesting, so there must be something really ugly going on.