Citibank China Slapped with Shanghai’s Biggest Ever Banking Fine Over Property Loans


Citibank China is one of several major banks subject to administrative penalties by the Shanghai branch of the China Banking Regulatory Commission for regulatory breaches.

Data released by the Shanghai CBRC branch indicates that a total of six banks operating within its jurisdiction have received penalties worth nearly 15 million yuan (USD$2.25million ) in total, including Citibank China, the Shanghai Jinqiao branch of Agricultural Bank of China, the Bank of Shanghai, the Shanghai branch of the Bank of Tianjin, as wells the the Shanghai branch and the Shanghai Zhangjiang branch of Hua Xia Bank.

Citibank Bank China and ABC’s Jingqiao branch received the biggest penalties, fined 10 million yuan and 600,000 yuan respectively, primarily for breaches in relation to real estate lending operations.

The 10 million yuan fine meted out to Citibank China is reportedly the largest fine ever issued by the Shanghai banking regulator

A Citibank China representative told 21st Century Business Herald that it has already taken pains to rectify the regulatory breaches.

“Strict risk controls and compliance are the ceaseless pursuit of Citibank China,” said the representative. “Corresponding rectification work has already been fully completed for the problems that we have uncovered.”

According to information made public by CBRC Citibank China’s key infractions included breaches of interest rate regulations during the period from January to October 2015, for certain real estate loans issued by its subordinate branches with its approval.

Citibank China also failed to exercise prudence with respect to management of the issuance of credit cards to low risk customers, and this problem had not yet been rectified by the end of 2015.

ABC’s Shanghai Jinqiao branch received its 600,000 yuan fine for extending a revolving credit line during the period from January to April 2016 to a company that had invested in four real estate development projects that lacked proper credentials.