Chinese authorities warn banks to step up checks
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The Chinese authorities have warned banks that a large-scale audit of the sector is far from over, and control over banks will only increase. Representatives of the Banking and Insurance Regulatory Commission (CBIRC) and the Central Commission for Discipline Inspection (CCDI) announced this to the leaders of the six largest banks in the country during a meeting last Friday. Bloomberg citing own sources.
The meeting with bank executives was held on the occasion of the launch of an investigation into Liu Liang, now a former chairman of the board and party secretary of the Bank of China. On March 31, regulators announced that he was suspected of “serious violations of discipline and laws,” without providing any further details. Mr. Liu has become one of the most senior figures in the country’s financial sector under investigation in recent years.
According to Bloomberg, calling the heads of state banks after the start of an investigation against one of the representatives of the sector is an atypical step on the part of regulators, which may indicate the desire of the authorities to show the seriousness of their intentions. CCDI said last week it would launch a new round of reviews on more than 30 state-owned companies, from China Investment Corp. to PetroChina Co., including a re-examination of five financial companies. In the last month alone, about 20 top bank managers in the country have been at the center of investigations or have been punished.
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