"Last month some Chinese banks found it excruciatingly difficult to borrow the money they required from their fellow banks. The interest rate for an overnight loan from one bank to another briefly hit 30% on June 20th, compared with a typical rate of about 2.5% earlier in the year. This cash crunch or “Shibor shock” (Shibor stands for Shanghai Interbank Offered Rate, a benchmark interest rate) raised immediate fears of bank defaults. It also highlighted broader concerns about financial excesses in China, where the supply of credit has been growing faster than the economy. What caused the sudden cash crunch?" (Quoted from article)