Shanghai Banking Regulator Slaps 10 Lenders with 11.78mn Yuan in Fines


The Shanghai branch of China’s banking regulator has issued 13 fines to banking sector financial institutions in the city worth a total of 11.78 million yuan (USD$1.86 million).

The China Banking and Insurance Regulatory Commission announced via its official website that its Shanghai office issued administrative fines to a total of ten banks for a range of infractions, including the Hongkou Sports Stadium branch of China Merchants Bank, the Shanghai branch of Pingan Bank, the Shanghai Agricultural Bank, the Shanghai Pudong Development bank, the Luwan branch of China Construction Bank, Nanyang Commercial Bank (China), Anxin Trust & Investment, the Shanghai branch of Industrial Bank Co., as well as two local county banks.

China Merchants Bank received a fine of 1 million yuan for non-compliant or non-standardised loans made at the start of 2015, while Shanghai Pudong Development Bank received a fine of 1.752 million yuan for permitting the use of credit card instalment funds for securities transactions and other non-consumer transactions, in what the regulator called a “severe violation of prudential business regulations.”

The Shanghai Luwan branch of China Construction Bank received a fine of 978,000 yuan for charging companies a services fee yet failing to provide” actual, personalised services, comprising an inconsistency between quality and price.”

Nanyang Commercial Bank incurred a penalty of 1.5 million yuan, for illicit investment in a real estate project that lacked adequate property documentation in September 2016, and breaches in relation to wealth  management products and interbank operations.