The Banking and Insurance Regulatory Commission shall investigate and deal with the responsible persons of the headquarters of Pudong Development Bank and Guangzhou Development Bank in accordance with the law.
In view of the prominent problems exposed by Pudong Development Bank and Guangzhou Development Bank in previous major cases, the Banking Insurance Regulatory Commission recently imposed penalties and accountability on the then chairman and senior managers according to law. Next, the CBRC will continue to promote the continuous improvement of corporate governance, strengthen the construction of internal control mechanism, urge the board of directors and senior management of the banking and insurance institutions to perform their duties effectively and regularly, and make every effort to prevent and resolve financial risks.
The Chengdu Branch of Pudong Development Bank had previously issued loans in violation of regulations. The Pudong Development Bank had seriously neglected the risk situation of its credit business and failed to take effective measures to verify and rectify it in time. At the same time, there were also some problems such as the failure to report to the supervisory authorities on major audit findings in time and the inadequate implementation of the rotation system for key posts. Mu Ya, deputy president of Pudong Development Bank in charge of related business, was warned and fined 300,000 yuan. Ji Xiaohui, then chairman of the board, and Zhu Yuchen, then president, were warned and fined 200,000 yuan for their negligence in management.
During the period from 2012 to 2016, the indicators of compliance management and risk management are set irregularly. At the same time, there are many problems in employee behavior management, job rotation system, case prevention system construction and implementation. Under the comprehensive influence of many factors, the case of illegal and irregular guarantees broke out in Huizhou Branch of Guangzhou Development Bank, which had a bad impact. Li Mingxian, then president of Guangzhou Development Bank, was cautioned for his negligence in management, and Dong Jianyue, then chairman, was not promptly corrected and supervised the effective performance of senior management.
Pudong Development Bank responds to the latest regulatory penalties: Chengdu Branch Risk Events have now been rectified in compliance
Pudong Development Bank told reporters that the administrative penalty for Pudong Development Bank announced recently by the Banking Insurance Regulatory Commission was a follow-up administrative penalty imposed by the Sichuan Banking Regulatory Bureau on Chengdu Branch in January 2018 after it imposed penalties for irregular loan issuance by Chengdu Branch. Under the guidance and assistance of supervision departments at all levels and local governments, the risk incidents of Chengdu Branch have now been rectified in accordance with the regulations, and the operation and management of the branches are normal.
Guangzhou Development Bank responded to the punishment of former executives: a series of measures have been taken to improve the compliance system
In response to the punishment imposed by the CBRC on Dong Jianyue, former chairman of the Board of Directors of Guangzhou Development Bank and Li Mingxian, former president of the Bank, Guangzhou Development Bank said that it was a follow-up administrative punishment imposed by the regulator on Guangzhou Development Banks risk incidents two years ago. In recent years, under the leadership of the Party Committee of China Life Group, the bank has strengthened the leadership of the Party, improved the level of corporate governance, actively served the national strategy, deepened the synergy between the insurance and banking companies, and improved the financial service capability. Especially in the aspect of internal control management, Guangzhou Development Bank has taken a series of measures to improve the compliance system, improve rules and regulations, strengthen staff management, carry out compliance education, strengthen risk investigation, and ensure the sound operation of compliance.