In the first quarter, banking institutions were fined nearly 400 million yuan, and 12 joint-stock banks were all fined! Qilu Bank received the only fine of 10 million yuan
Source of this article: Times Weekly Author: Cao Meng
Source: Diagram Worm
In the first quarter of 2024, various financial regulatory authorities continued to strictly supervise banking institutions.
Flush iFinD statistics show that in the first quarter of 2024, the State Administration of Financial Supervision and Administration, the People's Bank of China and the State Administration of Foreign Exchange issued more than 500 fines to banking institutions, with a fine amount of nearly 400 million yuan. Among them, 185 fines were issued to rural commercial banks, with a fine of more than 100 million yuan, ranking first among all types of banking institutions.
Table of the number of fines and the amount of fines of various banking institutions in the first quarter of 2024 Tabulated: Times Weekly reporter
On the morning of April 8, the county supervision branch of the State Administration of Financial Supervision and Administration was listed in a unified manner, marking the formal establishment of the "four-level vertical management" structure of the State Administration of Financial Supervision and Administration system and the important progress made in the reform of the financial management system.
At the beginning of this year, the State Administration of Financial Supervision and Administration said at the 2024 work conference that it had successfully completed the listing of the State Administration and provincial and municipal dispatched agencies, and would steadily promote the reform of county-level institutions in the 2024 work goals. With the improvement of the financial supervision organization system of the provincial branch of the mainland, the role of supervision as a "strong outpost" will be better played.
Pi Jianlong, director of Beijing Jintai Law Firm, told Times Weekly that in recent years, the accumulated risks of the mainland's small and medium-sized financial system have been continuously exposed, and various forms of violations of laws and regulations have appeared. In order to prevent and resolve financial risks and strengthen the governance and rectification of small and medium-sized financial institutions, the financial regulatory authorities should refine specific regulatory indicators, build a comprehensive and safe national regulatory information system, and realize real-time dynamic monitoring of the risks of small and medium-sized financial institutions.
Rural commercial banks and urban commercial banks are among the top fines
In terms of the number of fines and the amount of fines, rural commercial banks and urban commercial banks ranked the top two. As of the end of March, 176 rural commercial banks had received 185 fines with a fine of 118 million yuan, and 42 urban commercial banks had received 87 fines with a fine of 88.5295 million yuan.
Among the fines of rural commercial banks, Ningbo Yinzhou Rural Commercial Bank was administratively fined 5.6 million yuan by the Ningbo Supervision Bureau of the State Financial Supervision and Administration for a number of violations of laws and regulations such as carrying out Internet loan business in violation of regulations and carrying out credit business across regions in violation of regulations, which is currently the largest fine for this type of banking institution.
In the first quarter of 2024, the cumulative fines of the four city commercial banks exceeded 5 million yuan Tabulation: Times Weekly reporter
Among the fines issued by city commercial banks, there are 4 banking institutions that have been fined more than 5 million yuan in total, namely Qilu Bank, Mengshang Bank, Zhongyuan Bank and Bank of Beijing. Among them, Qilu Bank was confiscated by the Shandong Supervision Bureau of the State Administration of Financial Supervision and Administration and fined a total of about 14.9513 million yuan for a number of violations of laws and regulations, such as inadequate management of related party transaction loans and inadequate management of real estate loans. This is the first 10-million-level fine received by a banking institution in 2024, and the only 10-million-level fine so far.
Qilu Bank is one of the first city commercial banks in China and the first in Shandong Province to set up and introduce overseas strategic investment, and was listed on the Shanghai Stock Exchange in June 2021. According to Wind data, the Commonwealth Bank of Australia is currently the largest shareholder of the bank, with a shareholding ratio of 15.84%, and Jinan State-owned Assets Operation Co., Ltd. is the second largest shareholder, with a shareholding ratio of 10.03%. In addition, Chongqing Huayu Group Co., Ltd., which holds more than 5% of the bank's equity, holds 91% of the equity held by the judiciary.
According to the 2023 performance express report released by Qilu Bank, as of the end of 2023, the bank's total assets exceeded 600 billion yuan, an increase of nearly 100 billion yuan from the end of the previous year, with a growth rate of 19.56%. The significant increase in the bank's assets was mainly due to the rapid expansion of the credit business and the increase in debt investment.
Distribution of fines in rural commercial banks and urban commercial banks in the first quarter of 2024 Tabulation: Times Weekly reporter
In addition, from the analysis of the geographical location of the fines of rural commercial banks and urban commercial banks, the three provinces that received the largest number of financial regulatory fines in the first quarter of this year were Jiangxi, Shandong and Shanxi, and the largest amount of fines were Shandong, Zhejiang and Jiangxi, where the rural commercial banks and urban commercial banks were fined a total of 26.6823 million yuan, 20.988 million yuan and 18.51 million yuan.
12 joint-stock banks were fined
As of the end of the first quarter, 12 joint-stock banks have been fined this year, with a total of 81 fines and a confiscated amount of 69.8974 million yuan. Among them, the banking institutions that have received 10 or more fines from the financial regulatory authorities are Minsheng Bank, China Everbright Bank and China CITIC Bank, and the cumulative amount of fines and confiscations of Everbright Bank exceeds 10 million yuan.
Drafting: Times reporter
Judging from the 2023 annual report of China Everbright Bank, the bank's operating performance and asset quality have declined. Among them, CEB's net profit attributable to shareholders decreased by 8.96% year-on-year, the non-performing loan ratio remained unchanged from the end of 2022, and the provision coverage ratio decreased by 6.66 percentage points.
As of the end of 2023, the balance of non-performing loans (NPLs) in the real estate sector was RMB8.833 billion, an increase of RMB1.881 billion from 2022, and the surge in NPLs in the real estate sector led to the industry's share of nearly 20% of the bank's NPLs.
Among the fines issued by joint-stock banks, there were 23 fines with a confiscated amount of 1 million yuan or more. Among them, Huaxia Bank Beijing Branch was administratively fined 4.61 million yuan by the Beijing Supervision Bureau of the State Financial Supervision and Administration for 7 violations of laws and regulations, including inadequate management of personal operating loans and serious violations of prudential business rules in the management of real estate development loans, and 5 employees of the institution including Yue Qiang were fined and warned.
According to Huaxia Bank's 2023 performance report, the bank achieved operating performance of reducing revenue and increasing profits, and the non-performing loan ratio was 1.67%, a decrease of 0.08 percentage points from the end of 2022. As of the end of the third quarter of 2023, Huaxia Bank's non-performing loan balance was RMB39.831 billion, and the bank's non-performing loan ratio ranked third among listed banks at that time, second only to Qingnong Commercial Bank and Bank of Zhengzhou.
The Postal Savings Bank is in the forefront of fines and fines
In the first quarter of 2024, the financial regulatory authorities issued 129 fines to large commercial banks, with a fine of 71.306 million yuan. Among them, the Postal Savings Bank received 32 fines, with a total of 17.237 million yuan confiscated, ranking first among such banking institutions in terms of the number and amount of fines.
Drafting: Times reporter
At the same time, the largest single fine for large commercial banks is also collected by the Postal Savings Bank. Specifically, the Zhejiang Branch of the Postal Savings Bank of China was fined 6.45 million yuan by the Zhejiang Supervision Bureau of the State Financial Supervision and Administration for a number of violations of laws and regulations, such as issuing personal business loans to civil servants and misappropriating personal loan funds into the stock market in violation of regulations.
According to the 2023 annual report of the Postal Savings Bank, the bank's operating income and net profit have increased, with an increase of 2.25% and 1.23%, respectively. Among them, the Postal Savings Bank will achieve a net profit of 86.424 billion yuan in 2023, an increase of 1.069 billion yuan year-on-year. In 2023, the bank's credit impairment loss decreased by RMB9.161 billion compared with 2022, and the provision coverage ratio decreased to 347.57% from 385.51% at the end of 2022.