Blue Whale News, July 15 (Reporter Jin Lei) On the evening of July 15, the Bank of Xi'an (600928.SH) issued an announcement that the Shaanxi Financial Supervisory Authority has approved Liang Banghai's qualification as chairman of the company. Due to the above job adjustments, Liang Banghai also resigned as the company's president. Before the company appoints a new governor and is approved for regulatory qualifications, Liang Banghai will perform the duties of governor on his behalf.
One person has multiple jobs
So why is it necessary to rush to determine the position of chairman of the board when the new governor is still in place?
In fact, it has been almost 10 months since the position of Chairman of the Bank of Xi'an was vacant. According to relevant regulations, the time to perform duties on behalf of a person shall not exceed 6 months, and Chinese commercial banks shall select and hire qualified personnel to officially take office within 6 months.
On September 25 of last year, Guo Jun, the bank's chairman, submitted a resignation report to the board of directors due to reaching retirement age. The board of directors agreed that executive director and governor Liang Banghai would temporarily perform the relevant duties and obligations of the chairman of the board and the bank's legal representative until the new chairman was selected and approved to officially perform his duties.
According to information, Liang Banghai has worked for a long time at a policy bank and has served as a member of the Xi'an Branch of the China Investment Bank; Deputy Director and Director of the Shaanxi Branch of the China Development Bank; a member of the Party Committee and Deputy Governor of the Tibet Branch of the China Development Bank; and a member of the Party Committee and Deputy Governor of the Shaanxi Branch of the China Development Bank.
After leaving CDB, Liang Banghai joined Ping An Bank. Until February 2021, Liang Banghai was the governor of the Bank of Xi'an, and temporarily served as the bank's chairman from September 2023.
Although he resigned from the position of governor and became chairman, Liang Banghai can now be described as holding many positions. In addition to having to perform the duties of governor on his behalf, Shi Xiaoyun, secretary of the bank's board of directors, resigned recently on April 29 due to job adjustments, and the position of director Liang Banghai was also replaced by Governor Liang Banghai.
Two more executives face a red line of tenure
Shi Xiaoyun's resignation may be related to the red line of supervision of a “7-year rotation period” for key bank personnel. He served as director and secretary of the Bank of Xi'an for more than 7 years from August 16, 2016 to April 29, 2024.
In December 2019, the former China Banking Insurance Regulatory Commission issued the “Guiding Opinions on Employees of Banks and Insurance Institutions Avoidance Work” (hereinafter referred to as the “Opinions”), which require distinguishing between key personnel and ordinary employees among bank and insurance institution employees, implementing dual management of business avoidance and avoidance of employment for key personnel, and requiring ordinary employees to exercise business avoidance when engaging in key businesses according to their job responsibilities.
The “Opinion” sets out rotation requirements for key personnel and personnel in important positions. For management members at all levels, heads of internal departments, and employees in key business positions who have important influence in business operations, internal control management, and risk prevention, rotation is strictly enforced. In principle, the rotation period must not exceed 7 years.
In this context, since 2023, many banks have implemented a seven-year rotation period for key personnel.
Blue Whale News noticed that among the Bank of Xi'an executives, Huang Changsong and Zhang Chengzhe also served as deputy governors on August 16, 2016, for more than 7 years; another vice governor, Di Hao, who took office at the same time, passed away on June 18, 2024.
In April of this year, the Bank of Xi'an also received a decision on administrative supervision measures from the Shaanxi Securities Regulatory Bureau due to the fact that the sole director worked overtime and was still receiving allowances.
According to the decision, Ju Guoyu and Liao Zhisheng, the current independent directors of the Bank of Xi'an, have served for 6 consecutive years as of November 2022. Ju Guoyu submitted a resignation report to the bank in March 2023, but the bank has yet to complete the by-election of independent directors; Liao Zhisheng knows that he has been in continuous service for more than 6 years and is still working and receiving allowances, so far he has not submitted a written resignation report to the board of directors. According to relevant regulations, the Shaanxi Securities Regulatory Bureau decided to take corrective supervisory measures against the Bank of Xi'an and independent director Liao Zhisheng.