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Gov't takes aim at banking problems
By Sun Min (China Daily)
Updated: 2006-07-04 08:17
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The government has announced fresh measures to curb irregularities in the banking sector, this time ordering branch chiefs to resign if major criminal cases occur on their watch.
Banks have also been asked to set up an accountability system that allows bank executives and auditors to take responsibility for problems.
Meanwhile, top managers of branches involved in frequent irregularities and major criminal cases will not be allowed to take similar jobs at other branches in the future, while those breaking the law will be transferred to judicial departments swiftly.
These were some of the 11 measures issued by the China Banking Regulatory Commission (CBRC) on Friday to fight corruption and fraud in banks, co-operative credit units, trust firms and asset management companies.
The move followed a release by the National Audit Office of China a week ago, which exposed 51 criminal cases in the Agricultural Bank of China that involved 8.68 billion yuan (US$1.09 billion) and 157 bank officials in an audit of the bank's 2004 liability accounts.
The bank was also discovered to have irregularly granted 27.6 billion yuan (US$3.45 billion) of loans during 2004.