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>>50887996
> Risky liabilities

In early 2021, Beijing banned banks from selling deposit products via third party online platforms, fearing that the rapid expansion of the fintech sector could increase risks in the wider financial system. The People’s Bank of China called such practices “illegal financial activities.”

So why were small local banks in Henan apparently ignoring the ban and raising deposits from savers — like Ye, who live on the other side of the country?

China’s national banking and insurance regulator says third party online platforms allowed them to bypass these geographical restrictions and grow their business nationwide.