Supervision has issued nearly 700 fines to severely punish banks for violations of regulations. What is the root cause?
China-Singapore Jingwei Client, August 8th (Song Yafen) Since this year, dozens of banks such as China Construction Bank and Ping An Bank have been fined by the China Banking and Insurance Regulatory Commission and local banking and insurance regulatory bureaus. In the second quarter alone, the China Banking and Insurance Regulatory Commission issued 9 fines, and the local banking and insurance regulatory bureaus and branches of the Banking and Insurance Regulatory Bureau issued more than 680 fines. Among them, the Beijing branch of Ping An Bank was fined 7.7722 million yuan, which involved the largest amount.
The reasons for checking these fines mainly focus on issuing loans in violation of regulations, inadequate post-loan management, and inadequate pre-loan investigations. Behind the large number of tickets, where is the problem? How to reduce the illegal use of loans by individuals and companies and reduce the financial risks of the banking industry?
Multiple factors have caused more bank violations
Zhao Xijun, deputy dean of the School of Finance, Renmin University of China, said in an interview with the Sino-Singapore Jingwei Client: "In recent years, the number and quota of bank violations investigated by the China Banking and Insurance Regulatory Commission have increased. This is due to many factors. "
Specifically, according to Zhao Xijun’s analysis, the first reason is that the business scale of the banking industry is getting larger and larger, the scope and types of businesses engaged in are increasing, and the number of institutions and personnel employed in the industry are also increasing. Therefore, violations of regulations and laws may occur. Sex increase.
Second, in the process of establishing some banks, relevant regulations and management were not fully in place. For example, rural commercial banks in certain local towns and villages, some of which are reformed from rural credit cooperatives, may have various deficiencies in their equity structure, governance structure, and risk management.
Third, the banking market is undergoing great changes. Various new businesses, new technologies, and new business formats are constantly appearing. Its management and supervision will take a period of accumulation.
Fourth, the reform of the banking industry is constantly deepening, including reform of interest rate marketization, reform of corporate governance, and wider opening up. The implementation of these new reform measures requires banks to comply with the new regulations. However, some banks have not done enough to implement the new reform measures and comply with the new regulations, and they have not adjusted in time.
Fifth, the internal management of some banks is lax, causing some employees to be tempted to violate the management rules of the banking industry.
In addition to these objective problems, Zhao Xijun believes that the increase in bank fines is also related to the regulatory authorities' emphasis on compliance operations, healthy development, and stricter punishments.
How to prevent greater risks?
For the healthy development of the banking industry and prevent major risks from appearing, Zhao Xijun suggests that every subject should bear its own responsibilities. First, and most importantly, as a bank, it must keep its main responsibilities, manage and control risks well, be supported by services and technology, regulate healthy development, serve customers well, and serve the national economy well. Secondly, the supervisory department must "observe the soil and have a responsibility" and continue to consolidate its supervisory responsibilities. This is what the supervisory authorities are doing now. Third, stakeholders, including bank customers, borrowers, etc., fulfill their requirements with the bank. Finally, the public and the media should lead the supervision of public opinion.
Lian Ping, chief economist and dean of the research institute of Zhixin Investment, believes that the key is to strengthen "in-the-work" supervision. "In the past, the supervisory authorities may have been more pre-supervision, but not enough during and after the fact. I think the future supervision of banks will be the most important."
From the perspective of means, Lian Ping believes that on-site supervision should be strengthened, and on-site operations should be supervised in some key directions and fields. In addition, online supervision can also obtain a lot of information. For example, some local supervisory departments can access the internal system of the bank by turning on the computer to learn more about their policies and business operation process, so that they can conduct a process of supervision on whether the banking business is compliant or not. (Zhongxin Jingwei APP)
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