① Four branches of China Construction Bank were fined 4.7 million yuan for various irregularities involving loan management, and 7 responsible persons were warned. ② In recent years, the loan business has gradually become the hardest hit area for banks. Penalties for related business violations have continued to increase, and the proportion of individual fines has also increased markedly.
Financial Services Association, May 24 (Reporter Shi Sitong) On May 24, the Henan Regulatory Bureau of the State Financial Supervisory Authority issued multiple fines, revealing a number of illegal acts involving China Construction Bank's four branches in loan business, etc. Meanwhile, the four branches were fined a total of 4.7 million yuan as a result, and 7 responsible persons were warned.
Specifically, in this wave of penalties, the highest fine was the Henan branch of China Construction Bank, which was fined 2.4 million yuan for five illegal acts, and the related acts were all related to the loan business.
These include: issuing loans with no practical use and inflating the size of loans; working capital loans being misused to repay other loans due to poor post-loan management; inadequate monitoring of credit funds leading to illegal inflow of personal credit quick loans into the real estate sector and capital market; inadequate monitoring of credit funds leading to illegal inflow of loans to small and micro enterprises into the real estate sector and capital market; and inadequate monitoring of credit funds leading to illegal inflow of personal business loans into the real estate sector and capital market.
Meanwhile, CCB's Zhengzhou Jinshui branch also collected a 1.5 million yuan fine due to failure to due diligence in pre-loan investigations. Specific illegal facts include: failure to conduct pre-loan investigations and issuance of personal commercial housing loans in violation of regulations; failure to perform pre-loan investigations and issuance of personal housing loans in violation of regulations; failure to perform pre-loan investigations to illegally issue loans to fixed asset projects with improper capital; and failure to conduct pre-loan investigations to issue commercial property mortgages for false purposes.
In addition, CCB's Zhengzhou Railway Branch was also fined 300,000 yuan for “not doing due diligence in pre-loan investigations and issuing personal housing loans in violation of regulations”; CCB Jiyuan Branch was fined 500,000 yuan for “illegally collecting financial advisory fees for project financing.”
A Financial Services Association reporter noticed that judging from the origin of the penalty case, inflating the size of deposits and loans, pre-loan investigations, post-loan management, and monitoring of credit funds is the key to China Construction Bank's many branches and branches in Henan being punished this time.
In response to this, the industry generally believes that in recent years, financial supervisory authorities have become more and more strict in supervising bank loan management work, the loan business has gradually become the hardest hit area for banks to be penalized, and the penalties for related business violations have also clearly increased. At the same time, as strict supervision continues to deepen, in addition to punishing institutions, individual penalties imposed by supervision on those responsible have also gradually increased, and the proportion of individual fines has increased markedly.
“The loan business has become the main reason, indicating that supervision is still strictly paying attention to loan flows, and strict supervision is still ongoing.” A senior financial industry analyst at Broadcom Analytics told the Financial Federation reporter that loan management has always been one of the main directions of regulatory attention. In his view, if banks earnestly implement relevant risk management requirements, there are many ways to supervise pre-loan management, such as proof of use, opening a special collection account, and directly calling accounts with relevant institutions.
At the same time, institutions should also improve aspects such as in-loan inspection and post-loan management, and use more technical and institutional means to monitor. “Currently, in terms of technical capabilities, it is already possible to track the use of each loan. For example, through smart contract technology, etc., it is recommended that banks make more research and use to ensure that every consumer loan can be effectively tracked.” Wang Pengbo said.