On April 19, the administrative penalty information disclosure table issued by the Yuncheng Supervision Branch of the State Administration of Financial Supervision showed that Shanxi Ruicheng Rural Commercial Bank was fined 500,000 yuan for terminating the business of its branch without approval, and the financial license of Ruicheng Rural Commercial Bank North Street Savings Bank was revoked.
The reporter checked the website of the State Administration of Financial Supervision and found that the illegal operation of banks suspending business without approval is not the mainstream, but it also occurs from time to time.
In January this year, the Changzhou branch of China Minsheng Bank terminated the operation of its branch without the approval of the regulatory authorities and was fined 600,000 yuan, but its financial license was not revoked.
In July last year, the Meijiawu branch of the Xihu District Branch of Hangzhou United Rural Commercial Bank closed its business for more than six months without the approval of the regulatory authorities, and its financial license was revoked.
In June last year, the Industrial and Commercial Bank of China's Harbin Lei Feng Savings Bank was also revoked from its financial license for terminating business without regulatory approval.
According to the relevant regulations, bank branches are required to apply for approval for opening and closing business, and those who violate the regulations will face the risk of administrative penalties.
According to the Measures for the Implementation of Administrative Licensing Items of Chinese-funded Commercial Banks, if a domestic or foreign branch of a Chinese-funded commercial bank terminates its business (unless it is revoked in accordance with law), it shall submit an application for termination of business.
According to Article 23 of the Law of the People's Republic of China on Commercial Banks, the banking regulatory authority of the State Council shall make a public announcement by the banking regulatory authority of the State Council for the approval of the establishment of commercial banks and their branches. Where a commercial bank and its branches fail to commence business for more than six months without justifiable reasons from the date of obtaining the business license, or if they suspend business on their own for more than six consecutive months after commencing business, the banking regulatory authority under the State Council shall revoke their business licenses and make a public announcement.
Source: Financial Times client
Reporter: Xu Beibei
Editor: Yang Jingyi
Email: [email protected]