The China Banking and Insurance Regulatory Commission (CBIRC) has just issued fines to two of country’s big state-owned banks for irregular conduct.
On 28 August CBIRC announced that it had issued administrative penalties to Agricultural Bank of China (ABC) and China Construction Bank (CCB).
CBIRC said that “on-site inspections of the risk management and internal controls of ABC uncovered multiple forms of illegal conduct, including issuance of credit loans and discounted funds that directly flowed back to drawers of bank acceptance drafts.”
ABC received a fine of 53.156 million yuan for these infractions, while senior executives also received individual administrative penalties.
On-site inspections of CCB’s wealth management and asset management operations discovered that funds had been invested in real estate in brach of regulations, as well as failure to effectively separate wealth management operations from other banking operations.
CCB received a fine of 39.2 million yuan, while one member of its executive staff received a life-time ban from the banking sector.