On June 28, 2023, according to the website of the State Administration of Financial Supervision and Administration, the Shanghai Banking and Insurance Regulatory Bureau issued 8 fines to Shanghai Rural Commercial Bank, and Shanghai Rural Commercial Bank was ordered to make corrections and fined a total of 11.6 million yuan for 19 violations of laws and regulations, such as linking deposits and loans, transferring non-performing assets against procedures, and passing on costs. According to the administrative penalty information disclosure form, the violations of laws and regulations of Shanghai Rural Commercial Bank include: imprudent compliance review of interbank investment funds, illegal use of entrusted loan funds in prohibited fields, failure to supervise the use of entrusted loan funds in accordance with regulations, inaccurate loan classification, issuance of loans before the project capital of the same proportion as the loan is in place, issuance of loans to real estate projects with insufficient capital ratio, unreasonable financial leverage ratio of M&A loan projects, failure to strictly implement the regulatory requirements of housing for housing and not speculation, deposit and loan linkage, Actual performance of senior management duties without qualifications, use of personal consumption loans in non-consumption areas, reverse transfer of non-performing assets, failure to perform due diligence in pre-loan investigation of real estate loans, illegal inflow of personal consumption loans into the capital market, imprudent management of liquidity risks, passing on costs, provision of false statistical statements, imprudent management of consolidated statements, and illegal provision of government financing. Due to the above-mentioned violations of laws and regulations, Shanghai Rural Commercial Bank was ordered to make corrections by the regulator and fined a total of 11.6 million yuan.
1. A number of relevant responsible persons were fined
The cause of the violation can be traced back to 9 years ago
In addition to banks, the Shanghai Banking and Insurance Regulatory Commission also issued 7 fines to punish those responsible for violations of laws and regulations, as follows:
- From 2014 to the date of inspection, the Yangpu Branch of Shanghai Rural Commercial Bank issued loans to real estate projects with insufficient capital ratios. Lin Zhihui is directly responsible for the above acts and is given a warning;
- From March 2016 to March 2021, the Xuhui Sub-branch of Shanghai Rural Commercial Bank issued loans before the project capital in the same proportion as the loan was in place. Tang Yingzhen is directly responsible for the above acts and is given a warning;
- From March 2016 to March 2021, Shanghai Rural Commercial Bank provided government financing in violation of regulations. Lu Qing was directly responsible for the above acts, gave a warning, and was fined 50,000 yuan;
- From September 2017 to July 2018, the financial leverage ratio of the M&A loan project of the Free Trade Zone Branch of Shanghai Rural Commercial Bank was unreasonable. Dai Yun is directly responsible for the above behavior and is given a warning;
- From April to May 2021, Shanghai Rural Commercial Bank's M&A loans did not strictly implement the regulatory requirements of housing for living in, not for speculation. Cao Xiaochen was directly responsible for the above behavior, gave a warning, and imposed a fine of 50,000 yuan;
- From April to May 2021, Shanghai Rural Commercial Bank's M&A loans did not strictly implement the regulatory requirements of housing for living in, not for speculation. Qiao Donglin was directly responsible for the above behavior, gave a warning, and imposed a fine of 50,000 yuan;
- From April to May 2021, Shanghai Rural Commercial Bank's M&A loans did not strictly implement the regulatory requirements of housing for living in, not for speculation. Yan Hui was directly responsible for the above acts, gave a warning, and imposed a fine of 50,000 yuan;
We can see that many of the facts related to penalties can be traced back to earlier businesses, and even as early as 2014, which reflects the continuous increase in banking supervision.
According to statistics, in the first quarter of this year, the China Banking and Insurance Regulatory Commission and its dispatched agencies issued a total of 1,283 regulatory penalty fines, involving 325 banking institutions, with a total fine of 733.8 million yuan, 53.46% higher than the same period last year.
From the perspective of the top five types of violations of laws and regulations of various types of commercial banks, the largest number of fines related to illegal loan issuance, non-compliance with regulations, inadequate post-loan management, misappropriation of funds, due diligence in credit management, and imprudent credit management were the largest.
2.
The scale of assets and operating performance reached a new high
The first quarter was solid and good
Founded on August 25, 2005, Shanghai Rural Commercial Bank is a corporate bank controlled by state-owned assets and headquartered in Shanghai, and is also the first provincial-level joint-stock commercial bank in China to be restructured and established on the basis of rural credit bank. On August 19, 2021, Shanghai Rural Commercial Bank became a listed company on the main board of the Shanghai Stock Exchange. At present, the registered capital of Shanghai Rural Commercial Bank is 9.644 billion yuan.
According to its annual report, as of the end of 2022, the group's total assets were 1,281.399 billion yuan, an increase of 10.62% from the end of the previous year, and the operating income was 25.627 billion yuan, a year-on-year increase of 6.05%; The net profit attributable to the parent company was 10.974 billion yuan, a year-on-year increase of 13.16%, and the operating efficiency was steadily improved; The non-performing ratio decreased by 0.01 percentage points to 0.94%, and the asset quality advantage was consolidated. The provision coverage ratio increased by 2.82 percentage points to 445.32%, and the ability to offset risks continued to increase.
In the first quarter of 2023, the bank's operating performance continued the steady and good development momentum in 2022. In the first quarter, the group achieved operating income of 6.832 billion yuan, a year-on-year increase of 7.49%; The net profit attributable to the parent company was 3.500 billion yuan, a year-on-year increase of 12.44%, and the profitability maintained a high growth. As of the end of March 2023, the total assets of the group were 1,320.958 billion yuan, an increase of 39.559 billion yuan or 3.09% from the end of the previous year, making a further step on the road of trillion-yuan rural commercial banks.
May-June topics