Longyou rural commercial bank was heavily fined for two years, with a total amount of about 3 million

category:Finance
 Longyou rural commercial bank was heavily fined for two years, with a total amount of about 3 million


According to the penalty ticket, Longyou rural commercial bank was fined 1.5 million yuan in accordance with Article 46 of the banking supervision and administration law of the peoples Republic of China for failing to perform the three inspections on the loan and the loan funds were used by others.

According to Tianyan investigation, Zhejiang Longyou rural commercial bank, formerly known as Longyou County Rural Credit Cooperative Association, was established on November 1, 2004.

From the perspective of equity structure, Longyou xinfulong Shopping Plaza Co., Ltd. holds 53.96% of the shares of the bank, which is the largest shareholder of the bank. In addition, the remaining 10 shareholders are local enterprises in Zhejiang province or Longyou County.

On May 19, this year, Quzhou regulatory branch of China Banking and Insurance Regulatory Commission issued an official reply on the change of registered capital of Zhejiang Longyou Rural Commercial Bank Co., Ltd., which indicated that the bank agreed to increase its registered capital by means of profit increase and capital reserve conversion, and the registered capital was changed from RMB 222 million to RMB 275 million.

In addition, Hu Shoufang, the relevant person in charge of Zhejiang Longyou agricultural and commercial bank, was given a warning and punishment by Zhejiang Quzhou banking and Insurance Regulatory Bureau for failing to fulfill the three checks on the banks loans and was directly responsible for the use of the loan funds by others.

It is worth noting that as of the end of the third quarter of 2017, the agricultural loan balance of Longyou rural commercial bank was RMB 7.430 billion, accounting for 92.49% of the total loan balance of the bank.

In terms of financial situation, from 2015 to the end of 2017, the non-performing loan ratio increased year by year, which were 3.49%, 3.82% and 3.97%, respectively.

This is not the first time that Longyou rural commercial bank has been severely punished.

Recently, the China Banking and Insurance Regulatory Commission (CIRC) issued the notice on looking back to rectify the disorder in the banking and insurance market, and organized the work of looking back to rectify the disorder in the banking and insurance industry. Among them, three checks on loans are not due is one of the focuses of credit management.

According to Article 35 of the law of the peoples Republic of China on commercial banks, commercial banks should strictly examine the use, repayment ability and repayment method of borrowers for loans; meanwhile, Article 59 stipulates that commercial banks may, in accordance with relevant provisions, formulate their own business rules and establish and improve their risk management and internal control systems. The method of bank credit management also emphasizes the importance of loan three check, and requires customer managers and auditors to make pre loan investigation, loan time review and post loan inspection. Not only agricultural commercial banks, but also Agricultural Bank of China, China Construction Bank, agricultural Commercial Bank of China and other banks have been punished repeatedly for the three checks of loans, which is still a serious area of fines for banks. Source: China Times editor in charge: Li Zhaoyuan_ B7890

According to Article 35 of the law of the peoples Republic of China on commercial banks, commercial banks should strictly examine the use, repayment ability and repayment method of borrowers for loans; meanwhile, Article 59 stipulates that commercial banks may, in accordance with relevant provisions, formulate their own business rules and establish and improve their risk management and internal control systems.

The method of bank credit management also emphasizes the importance of loan three check, and requires customer managers and auditors to make pre loan investigation, loan time review and post loan inspection.

Not only agricultural commercial banks, but also Agricultural Bank of China, China Construction Bank, agricultural Commercial Bank of China and other banks have been punished repeatedly for the three checks of loans, which is still a serious area of fines for banks.