The China Banking and Insurance Regulatory Commission (CBIRC) has hit six banks with fines worth over 150 million yuan (approx. USD$22 million) in total for infractions in relation to wealth management products (WMP’s) and lending practices.
The six banks that incurred fines in November included big five state-owned lender Bank of Communications, which was hit with a 7.54million yuan fine; China CITIC Bank, which incurred a fine of 22.8 million yuan, and China Zheshang Bank, which received a fine of 55.5 million yuan.
Violations included the investment of funds obtained via WMP’s in real estate projects and the use of misleading advertising, according to an official statement from CBIRC.
The fines arrive amidst heightened efforts to address risk in China’s financial system, with the number of penalties issued by CBIRC and its regional departments to banks and individuals rising by a third in the third quarter compared to the second quarter to hit around 800 in total.