China fines banks over wealth management transgressions

Updated 2018-05-07 09:46:02 Xinhua

The China Banking and Insurance Regulatory Commission (CBIRC) recently fined three commercial banks for improper practices in wealth management.

China Merchants Bank, one of the country's biggest, was fined more than 65.7 million yuan (about 10 million U.S. dollars) for 14 violations, including guaranteeing principle on some wealth management products (WMP), the CBIRC said in an online statement Friday.

Shanghai Pudong Development Bank was fined more than 58.5 million yuan for 19 offences including allocating too much money raised from WMPs to risky assets.

Industrial Bank Financial Leasing Company, a wholly-owned subsidiary of Industrial Bank, was fined 1.1 million yuan for bundling the sales of WMPs with financial leasing business, among others.

The punishment comes as China's regulators toughen their stance on market irregularities, targeting risky business such as shadow banking.

Last month the central bank tightened regulations on asset management businesses of financial institutions.

The new rules unify regulatory standards for asset management products and address issues such as implicit guarantees by banks on many WMPs.

While the new rules give financial institutions until the end of 2020 to fully reform their practices, risks in existing business may be gradually exposed, and more fines could be imposed, analysts said.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58October 17 2018 22:14:12

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16October 17 2018 22:14:12

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18October 17 2018 22:14:12

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

News:
China World Business Sports Showbiz Audio
Video:
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
Photos:
China World Fun Travel Entertainment Sports
Travel:
Beijing Shanghai Guangzhou
Lifestyle:
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords