The China Banking and Insurance Regulatory Commission (CBIRC) has fined the Bank of China’s [3988:HK] (BoC) Shenzhen Branch a total of RMB11.3m (USD1.67m) for violating several laws and regulations, as reported by Sina Finance on August 6. The branch was accused of conducting unauthorized wealth management business and providing false data to regulatory bodies, among other non-compliant operations. This is the greatest fine that BoC has received this year. At the same time, 12 people were penalized, four of whom were barred from the banking profession for life. Throughout 2022, BoC has been fined 79 times with a total fine of RMB45.5m (USD6.73m) by regulators such as the CBIRC, China’s central bank People’s Bank of China (PBoC), and others.

China has tightened regulations for the domestic banking industry. On July 29, the Shanghai branch of the Industrial and Commercial Bank of China (ICBC) [1398:HK] was fined RMB13.1m (USD1.94m) for ten breaches, including the unauthorized use of wealth management funds. Earlier in May, eight banks, including ICBC, BoC, and Agricultural Bank of China [1288:HK], were fined a total of RMB17.7m (USD2.62m) for illegal practices in data reporting. As of August 5, the total amount of fines issued by the CBIRC on China’s six major state-owned banks this year had surpassed RMB173m (USD25.6m). ICBC was fined the most, with penalties amounting to around RMB49.9m (USD7.39m), and the Bank of Communications [3328:HK] was fined the least, with a total fine of approximately RMB9.72m (USD1.44m).

Sources:

https://finance.sina.com.cn/money/bank/gsdt/2022-08-06/doc-imizirav7054755.shtml

https://finance.sina.cn/jinrong/2020-05-09/detail-iircuyvi2233932.d.html

http://m.shaoxing.com.cn/p/2955868.html

https://m.jrj.com.cn/madapter/finance/2022/08/08111236878287.shtml