Bloomberg News reported that the Zhejiang branch of China's financial regulator has asked local banks to stop using non-compliant gifts to attract deposits.
This comes after a Shenzhen-based Ping An Bank ran a promotion offering Labubu dolls to new customers who deposit at least 50,000 yuan ($AU 10,700) for three months.
Customers were given a choice between a Labubu Big Into Energy Series blind box or a gift pack.
The campaign went viral on the Chinese social media platform Xiaohongshu, also known as RedNote.
Chinese regulator, the National Financial Regulatory Administration, wants to end the practice of offering customers gifts, citing concerns that it will minimise their profit margins.
The toothy little collectible monsters have become an unlikely status symbol.
The fluffy figurines are inspired by Nordic folklore, the brainchild of artist Kasing Lung.
A single Labubu will set you back anywhere from around $30 to over $85. They go for even more on resale sites.
Last year alone, Chinese toy maker Pop Mart made more than $1 billion from the dolls.
The dolls were first launched in 2015, but it wasn't until Lisa from K-pop band Blackpink started raving about Labubus that the mania really took off.
