The Bank of China’s consumer finance vehicle has been hit with a second fine since the start of the year for regulatory breaches.
The Chinese central bank announced via its official website that BOC Consumer Finance (中银消费金融) was hit with a fine of 100,000 yuan (approx. USD$14,432) on 10 October 2018 for breach of the “Credit Investigation Operation Administrative Regulations” (征信业管理条例).
The fine marks the second time that BOC Consumer Finance has been hit with an administrative penalty since the start of 2018.
The Shanghai branch of the Chinese banking regulator slapped BOC Consumer Finance with a total penalty of 1.3868 million yuan at the end of May, for improper fee collection in relation to some of its lending operations.
BOC Consumer Finance was established in June 2010, as part of the first batch of consumer finance companies to obtain approval from the China Banking Regulatory Commission (CBRC).
Bank of China is the largest shareholder in the Shanghai-headquarted company.
BOC Consumer Finance posted operating revenues of 4.005 billion yuan in 2017 for a YoY increase of 70.65%, and net profits of 1.375 billion yuan for a YoY surge 157.78%, making it the Chinese consumer finance company with the largest profits that year.
