CHINA —China’s banking and insurance regulator, the China Banking and Insurance Regulatory Commission (CBIRC), has issued administrative penalties against five financial institutions, including Bank of China, China Minsheng Bank, Bohai Bank, China Construction Bank, and Standard Chartered Bank (China), as well as relevant responsible personnel. The fines amount to a total of RMB 387.9 million (US$56.48 million).
This was announced by CBIRC on its website yesterday (17 Feb).
The penalties were issued after the CBIRC conducted special inspections on the implementation of major policies to support private enterprises and small and micro enterprises by these financial institutions.
The inspections found that the institutions engaged in illegal activities such as the diversion of loan funds, falsification of statistical data, and non-standard major related-party transaction review procedures. The CBIRC imposed penalties and fines on these institutions based on their respective violations.
Bank of China was fined a total of RMB16 million (US$2.33 million) by the CBIRC for its violation of rules. The main violations included the diversion of loan funds, falsification of statistical data, and non-standard major related-party transaction review procedures. The bank’s branches were also fined a total of RMB16.8 million (US$2.45 million), and two responsible personnel were given warnings.
China Minsheng Bank, which was found to have unlawfully gained and fined RMB 66.7 million ($9.71 million), had its branches fined a total of 23 million RMB ($3.35 million). Two responsible personnel were also given warnings.
Bohai Bank, which was found to have committed multiple violations, was fined a total of RMB 4.3 million (US$626,000), and its branches were fined a total of 12.3 million RMB ($1.79 million). One responsible personnel was given a warning.
China Construction Bank was fined a total of RMB 73.4 million ($10.69 million) for 38 major violations, which include serious violation of loan management rules, and for conducting non-standard operations with investment funds. The bank’s branches were also fined a total of 125.5 million RMB ($18.27 million), and nine responsible personnel were given warnings and fined.
Standard Chartered Bank (China) was found to have committed 39 major violations, resulting in a total fine of 49.7 million RMB ($7.24 million) by the CBIRC. The bank’s headquarters was fined 36.3 million RMB ($5.29 million), and its branches were fined a total of 13.4 million RMB ($1.95 million). The bank’s major violations included some senior managers failing to perform their duties without approval, and part of the bank’s important policy systems not being accompanied by a Chinese translation. The bank’s management was not independent and its compensation payment was not compliant.
The CBIRC stated that it will strictly implement administrative penalties in accordance with the decisions and deployments of the CPC Central Committee and the State Council, regulate market order, safeguard the legitimate rights and interests of financial consumers, supervise banks and insurance institutions to conduct compliant and steady operations, and help financial services support the real economy, while firmly guarding against systemic financial risks.