Hong Kong pumps $500 million into bank system after run on Bank of East Asia

Bank run prompts $500M infusion in Hong Kong

Source: AP

Hong Kong pumps $500 million into bank system after run on Bank of East Asia

HONG KONG (AP) -- Hong Kong injected nearly $500 million into the financial system Thursday to shore up liquidity a day after the Bank of East Asia was hit with what appears to be region's first major bank run since the global financial crisis erupted last year.

In what appeared to be a sizable bank run, thousands of customers converged on BEA offices across Hong Kong on Wednesday to demand their deposits amid unconfirmed rumors about the bank's stability. Thursday saw fears spread to Singapore, where the bank reported higher numbers of customers withdrawing money.

The panic underscored a growing distrust of financial institutions in Asia since the turmoil on Wall Street began.

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