The bank was at least the fourth to be on the verge of collapse after recent prior nationalizations of Baoshang Bank ,Bank of Jinzhou, and most recently, China's Heng Feng Bank.

Now yet another Chinese bank has found itself scrambling to prevent a collapse: Yingkou Coastal Bank was forced to stack bundles of yuan notes high behind the counters of its branches earlier this month, as the northeast China lender fought off a run on deposits while onsite government officials battled rumors of a funding crunch.

As Reuters reports, Yingkou was the latest small bank to have its deposit-reliant funding base undermined by a flash mob of "running" depositors, spooked by the funding crunch that led to the shock state-led rescue of regional lender Baoshang Bank first which in turn prompted a cascade of small bank bailouts.

To avoid an almost instant death, Yingkou had no choice but to engage in what we have hence dubbed a self-destructive "doom loop: to help repair the damage and to keep the deposits from being pulled, the bank hiked its already high deposit interest rates to entice depositors. Alas by doing so, the bank - which can not possibly find investing opportunities to offset the higher deposit rates - has just accelerated its eventual insolvency.