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China Imposes Checks on Large Transactions After Bank Runs

  • Pilot program kicks off in Hebei province this month
  • China’s small lenders are struggling with surging bad debt
The Yuan Set for Longest Weekly Losing Run Since 2016
Photographer: SeongJoon Cho/Bloomberg

China imposed a program to keep large transactions in check amid heightened concerns over the state of its financial system as bad debt balloons in the wake of the coronavirus outbreak.

The People’s Bank of China this month kicked off a pilot plan in Hebei province that would require retail and business clients to pre-report any large withdrawals or deposits, according to a statement. The two-year program will be expanded to Zhejiang and Shenzhen in October, encompassing more than 70 million people.