Over ten Chinese private banks halt new out-of-province personal deposits
In short
Of China's 19 private banks, more than ten have stopped selling new personal deposits to customers who live and are registered outside their home province or city, Jiemian reported on 22 October. Existing deposits can be held to maturity but not renewed. Outlets describe the move as a stricter application of rules set in 2021, not a policy change.
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More than ten of China's 19 private banks have explicitly stopped selling new personal deposits to customers whose residence and household registration are both outside the bank's province or city, Jiemian reported on 22 October. The banks have also cut or closed online out-of-region purchase entry points. Cnbeta named 14 banks in the rectification, including Shanghai Huarui Bank, Tianjin Jincheng Bank, Wenzhou Minshang Bank, Chongqing Fumin Bank and Liaoning Zhenxing Bank. [ 1 , 2 , 3 ]
Existing deposits can be held to maturity under their original agreements and are not renewed afterwards, according to Jiemian and Huxiu. They said customers can still withdraw early. Cnbeta said regulators call for existing out-of-region deposits to be digested naturally rather than forcibly cleared, with all of them settled by the end of 2027 and no extension or restructuring allowed. [ 1 , 2 , 3 ]
Tianjin Jincheng Bank announced on 14 October that from the next day it would gradually stop selling new personal deposit products to non-Tianjin customers. Wuxi Xishang Bank limited personal deposits to Jiangsu customers in early September, according to Jiemian and Cnbeta. Online Class II card users there must pass a 'three of five' local qualification check. In Jiemian's test, a user based in Guangzhou trying to buy a three-year deposit in the Liaoning Zhenxing Bank app was told the product was only for Liaoning customers, and that phone number location, residence and work addresses would be checked. [ 1 , 2 , 3 ]
Four banks are outside the restrictions: WeBank (微众银行), Wangshang Bank (网商银行), Xinwang Bank (新网银行) and Yilian Bank (亿联银行) are national online banks and can take out-of-region personal deposits. Wuhan Zhongbang Bank has been in a takeover period since 3 July 2026 and is excluded from comparison, Jiemian said. A bank liability-management official told Jiemian the limits mainly hit customers with online Class II accounts, while Class I cards opened at a branch counter are largely unaffected. [ 1 , 2 , 3 ]
Several interviewees told Jiemian the tightening is a stricter application of rules set in 2021, not a policy shift. Zeng Gang (曾刚) of the Tianfu Liyan Institute of Finance said that in 2021 regulators brought out-of-region deposits at locally incorporated banks into macroprudential assessment. In July 2026 regulators set the 'three of five' test, using ID, residence, business location, phone number location and device location. [ 1 , 2 , 3 ]
Xing Yicai (邢奕才) of Ziruixing Investment and Lou Feipeng (娄飞鹏) of Postal Savings Bank of China said funding comes under the most pressure in the short term, with higher costs possible for banks that rely on internet traffic. Xing said effects differ by bank. Both said that over the longer term the change could lower the share of costly out-of-region liabilities. Tian Lihui (田利辉) of Nankai University, quoted by Cnbeta, said the rectification protects fair deposit pricing and blocks cross-region risk transmission. [ 1 , 2 , 3 ]
Why it matters
Outlets say online-reliant private banks face pressure on deposit growth, customer acquisition and funding costs. Experts quoted by the outlets say the change may lower the share of costly out-of-region deposits at these banks, and that the stock of such deposits must be cleared by the end of 2027.
Key facts
- More than ten of the 19 private banks have explicitly suspended new personal deposit sales to customers whose residence and household registration are both outside the bank's province or city, and have cut or closed online out-of-region purchase entry points. [ 1 , 2 ]
- Tianjin Jincheng Bank announced on 14 October that from the next day it would gradually stop selling new personal deposit products to non-Tianjin customers. [ 1 , 2 ]
- Wuxi Xishang Bank limited personal deposits to customers in Jiangsu province in early September; online Class II card users must pass a 'three of five' local qualification check. [ 1 , 2 , 3 ]
- Under rules detailed in July 2026, a customer counts as local if three of five items (ID, residence, business location, phone number location, device location) fall in the bank's area; stock out-of-region deposits must be cleared by the end of 2027. [ 1 , 2 , 3 ]
- WeBank, Wangshang Bank, Xinwang Bank and Yilian Bank are national online banks and are not subject to the territorial limit. [ 1 , 2 , 3 ]
- Cnbeta named 14 banks in the rectification, including Shanghai Huarui Bank, Tianjin Jincheng Bank and Liaoning Zhenxing Bank. [ 3 ]
Confirmed by several sources
- More than ten of the 19 private banks have halted new out-of-region personal deposits. [ 1 , 2 ]
- Existing out-of-region deposits can be held to maturity and are not renewed afterwards. [ 1 , 2 , 3 ]
- Wuxi Xishang Bank limited personal deposits to Jiangsu customers in early September. [ 1 , 2 , 3 ]
- Liaoning Zhenxing Bank's app checks customer location and blocks non-Liaoning users. [ 1 , 2 , 3 ]
- Four national online banks (WeBank, Wangshang Bank, Xinwang Bank, Yilian Bank) are not covered, and Wuhan Zhongbang Bank is in a takeover period since July 2026. [ 1 , 2 , 3 ]
- Regulators set a 'three of five' local-customer test in July 2026 and require stock out-of-region deposits to be cleared by the end of 2027. [ 1 , 2 , 3 ]
- The tightening traces to 2021 rules that brought out-of-region deposits at locally incorporated banks into macroprudential assessment. [ 1 , 2 , 3 ]
Still unclear
- The exact number of banks affected. Jiemian and Huxiu say 'more than ten' of 19; Cnbeta's headline says 14 and lists 14 names, but its text also refers to '15 banks'.
- At which step Liaoning Zhenxing Bank blocks non-local users. Jiemian describes a prompt at the deposit order step; Cnbeta says the location check is at account opening.
- When Wuxi Xishang Bank's 'localisation authentication' system goes live. Only Cnbeta mentions it, saying it was expected in mid-October.
- Plans of Meizhou Kehang Bank to finish applying the 'three of five' standard by 1 January 2027. Reported only by Cnbeta, citing the bank.