After more than four months of development and iteration, nearly 10 months after the official launch of Southern Weekly's "Shepherd Dog - China Financial Industry Compliance Cloud Platform" (hereinafter referred to as the "Shepherd Dog Platform"), the data of the "Shepherd Dog Platform" has been successfully expanded.
After the large expansion of the sheepdog platform, will there be a new phenomenon of banking violations in April 2024 or will the old trend continue?
According to the statistical analysis of the Shepherd Dog Platform, the People's Bank of China, the State Administration of Financial Supervision and Administration, the State Administration of Foreign Exchange, the China Securities Regulatory Commission and the above four local agencies, the Shanghai Stock Exchange, the Shenzhen Stock Exchange, the Securities Association of China, the Asset Management Association of China and the National Association of Financial Market Institutional Investors of China issued more than 400 pieces of penalty information against the banking industry, involving fines of more than 100 million yuan, and the number of fines and fines increased significantly from the previous month.
In addition to the "stubborn diseases" of the industry such as the "three checks" on loans, the banking industry has also seen the recurrence of "old problems" such as "fake down payments", indirect investment of wealth management funds, and inadequate management of the qualifications of the bank's credit and fund sales personnel.
The data was expanded to 9 institutions
In order to assess the compliance of financial institutions in a real-time and accurate manner, the Shepherd Dog Platform system, which has been developed by Southern Weekly for half a year, was officially launched in July 2023. Through its self-developed intelligent platform, Southern Weekly uses both machine and manual guarantees to ensure the timeliness and accuracy of data processing, and conducts comprehensive verification of data quality before and after the event.
At that time, the Shepherd Dog platform included the main sources of financial institution punishment data (one bank and two bureaus) (People's Bank of China, the State Administration of Financial Supervision and Administration and the State Administration of Foreign Exchange). In order to further expand the data source, after more than four months of development and iteration, Southern Weekend expanded the database source of the Shepherd Dog Platform to "one bank, two bureaus, four commissions and two institutions" (People's Bank of China, State Financial Supervision and Administration Administration, State Administration of Foreign Exchange, China Securities Regulatory Commission, Shanghai Stock Exchange, Shenzhen Stock Exchange, Securities Association of China, Asset Management Association of China and China National Association of Financial Market Institutional Investors), that is, six new institutional administrative punishment data.
At present, the expanded Shepherd Dog platform database has been officially launched. The compliance areas of the financial industry covered by the data of the Shepherd Dog platform have expanded from the original banking, insurance, and third-party payment industries to multiple financial subdivisions such as the securities industry, fund industry, futures industry, and trust industry.
At this point, the Shepherd Dog platform will reflect the compliance of the financial industry in a more comprehensive, timely and accurate manner.
The top four highest individual fines all came from city commercial banks
In April, did the compliance of the banking industry continue the good trend in the first quarter (see "Among the more than 1,700 fines, the "appearance rate" of rural commercial banks is the highest, and Qilu Bank receives the highest fines)?
According to the Shepherd Dog platform, whether it is an institutional fine or an individual fine, the two indicators of fines and fines in the banking industry have shown a significant upward trend month-on-month. Among them, the number of individual fines and fines increased the most, with an increase of 39% and 47% respectively from the previous month. In contrast, although the increase in the number of institutional fines and fines was slightly smaller, the institutional fines exceeded 100 million yuan, accounting for 96% of the total fines in April.
Which institutions have the most employees fined the most times and the highest amount of fines?
According to statistics from the Shepherd Dog Platform, the Southern Weekly New Finance Research Center found that among the fines received by individuals, the number of fines issued by employees of rural commercial banks and urban commercial banks accounted for 40%, and the fines accounted for 50%. Among them, the top four individuals with the highest fines were all employees of urban commercial banks.
Rural commercial banks still violate regulations frequently, and the fines of joint-stock banks have increased the most
Which type of organization will be fined the most? Do rural commercial banks still appear frequently?
According to the sheepdog platform, rural commercial banks, state-owned banks and urban commercial banks were the main forces of high institutional fines in April. These three types of institutions were all fined more than 20 million yuan, accounting for 73% of the total. Among them, rural commercial banks still rank first in terms of fines and fines.
At the same time, joint-stock banks, which have always been highly compliant, suddenly changed their expectations in April: the number of fines and fines increased by 125% and 190% respectively month-on-month.
The Southern Weekend New Finance Research Center also found that in addition to the Postal Savings Bank of China Co., Ltd. (PSBC) and Bank of China Co., Ltd. (Bank of China), the number of fines issued by the eight banks on the list of fines increased month-on-month, and the increase was greater than 100%. At the same time, the fines of all institutions on the list of fines also showed a month-on-month upward trend.
It is worth mentioning that among the top 10 banks on the list, 7 banks were not penalized by the regulatory authorities in March.
Fines in Hubei soared
Which regions have more serious banking violations?
According to the Shepherd Dog platform, Xinjiang, Zhejiang Province, Jilin Province and Hubei Province are among the top four in the list of the number of institutional fines and the amount of institutional fines. In absolute terms, Xinjiang had the largest number of fines, as high as 22, an increase of 57% month-on-month; Zhejiang Province was fined the most, as high as 19.44 million yuan, an increase of 225.53% from the previous month.
In terms of relative values, Hubei Province ranked first in terms of the number of institutional fines and the amount of institutional fines, with an increase of 300% and 1,640% month-on-month respectively.
In terms of the improvement of compliance, Liaoning Province, Hunan Province and Inner Mongolia had a better degree of compliance improvement in April. None of the three districts received agency fines in April. The number of institutional fines and institutional fines both decreased by 100% month-on-month.
In addition, among all regions, Hunan Province and Inner Mongolia are the two regions where the compliance of banking practitioners has improved better. In April, the number of individual fines in the two regions was 0, down 100% month-on-month.
Which regions have the highest number of fines imposed on bankers?
Jilin Province, Xinjiang and Hubei Province ranked the top three in the list of the number of personal penalty information in the banking industry in April, and the number of fines in the three regions showed a month-on-month upward trend. Among them, Hubei Province has the highest month-on-month growth rate (525%).
In terms of the amount of fines imposed on individuals, Xinjiang, Jiangsu Province and Jiangxi Province ranked among the top three. Among them, Jiangsu Province increased by 2,733% month-on-month.
Relapse of old problems: Fake down payments reappear
Is the area of non-compliance an old problem or a new phenomenon?
Compared with March, 16 new penalties were imposed on the banking industry in April, covering business including loan business, bank acceptance bill business, wealth management business, fund distribution business, foreign exchange business and bancassurance channels. Most of the compliance issues involved in these businesses have been the focus of regulatory remediation in the past few years. (For details, see "Supervision of "Long Teeth and Thorns", Banking and Insurance Institutions Are Fined 15 Billion Yuan a Year|2023 New Financial Development Report (5))
Specifically, the issue of China Merchants Bank's illegal handling of "fake down payment" personal mortgage loans, the issue of Hankou Bank's indirect investment of wealth management funds in the Bank's credit assets, and the problem of inadequate management of the qualifications of fund sales personnel involved in China CITIC Bank Co., Ltd. (hereinafter referred to as "China CITIC Bank") all appeared in 2023, but did not occur in the first quarter of 2024. Among them, a series of risk isolation and non-compliance issues in wealth management business, such as the investment of wealth management funds in the credit assets of the Bank, have been the focus of rectification by the regulatory authorities for many years. The Southern Weekend New Finance Research Center found that since 2023, institutions involved in this type of problem have received large fines of more than 1 million yuan.
The stubborn disease has not been cured: the loan is not dutifully checked for three times
In addition to the recurrence of "old problems", the "stubborn diseases" of the industry are still the hardest hit areas in the field of banking compliance in April.
According to the Shepherd Dog platform, in April, the frequency of failure to perform due diligence and violation of prudential business rules in the "three checks" of loans was as high as 107 and 27 times. In terms of legal provisions, Article 21 of the Banking Supervision Law of the People's Republic of China has been cited 268 times. According to the law, "the rules for the prudent operation of banking financial institutions shall be prescribed by laws and administrative regulations, and may also be formulated by the banking regulatory authority of the State Council in accordance with laws and administrative regulations." The prudential business rules provided for in the preceding paragraph include risk management, internal control, capital adequacy ratio, asset quality, loss reserves, risk concentration, related party transactions, asset liquidity, etc. Banking financial institutions shall strictly abide by the rules of prudent operation. ”
In addition, the misappropriation of credit funds and the misappropriation of working capital loans are also areas of regulatory focus. The combined number of citations of the two causes of action was 35. Based on the above analysis, it is found that the hardest hit area of the banking industry's compliance area is still the lending business.
It is worth mentioning that since the beginning of 2024, the level of compliance in the field of data security has improved. Following a significant drop in the number of fines related to compliance issues in the field of data security from January to February 2024 (see the "Two Highs of Banking Fines: Individuals and Small and Medium-sized Banks|Financial Compliance List") for details, only one banking fines from March to April was related to data security issues.
Liao Haolun, researcher at the New Finance Research Center of Southern Weekly
Editor-in-charge: Fengyu