This article**: Times Weekly Author: Cao Meng.
In 2023, the situation of strict supervision of banks continues. According to the data of Flush ifind and the statistics of fines disclosed by the regulatory authorities (village and town banks and rural credit cooperatives are not included in the statistics), from January 1 to December 29, 2023, the State Financial Supervision and Administration (including the former China Banking and Insurance Regulatory Commission), the People's Bank of China, and the State Administration of Foreign Exchange issued 2,033 fines to 1,796 banking and financial institutions (including branches), with a total amount of 239.1 billion yuan.
*: Picture Worm Compared with 2022, the number of fines issued by regulators to banks in 2023 has decreased, but the number of large fines has increased, and the total amount of fines and forfeitures has increased for four consecutive years. On November 16, China CITIC Bank was issued 2The 2.4 billion yuan fine is the largest bank fine in 2023. In 2022, the largest fine in the banking industry was an administrative penalty of 44.1 million yuan imposed by the former China Banking and Insurance Regulatory Commission on violations of the credit business of Qingdao Rural Commercial Bank.
In 2023, the penalties imposed by the regulators on banks will mainly focus on credit business, corporate governance, and prevention of internal control and compliance cases. Among them, nearly 1,000 fines were issued by banks and financial institutions for violating credit business regulations.
The number of fines in the 10 million level increased by 10 compared to last year.
Of the 2,033 fines, 1,520 were issued by the State Financial Regulatory Administration (including the former China Banking and Insurance Regulatory Commission), 348 by the People's Bank of China and 165 by the State Administration of Foreign Exchange. In 2023, the number of banking fines decreased significantly from 2,424 in 2022, but the amount of fines and forfeitures increased by more than 5500 million yuan.
In addition, the number of large-value fines in the banking industry will increase significantly in 2023, with nearly 300 million-level finesThere were 22 fines of more than 10 million yuan, an increase of 10 from 2022.
Ma Tianjiao, a postdoctoral fellow at the Bank of China Research Institute, told the Times Weekly reporter that since 2023, the strict supervision of the banking industry has continued, and the amount of large fines has increased significantly. With the listing of the State Administration of Financial Supervision and Administration, all kinds of financial activities will be unified into supervision, and the institutional, behavioral, functional, penetrating and continuous supervision of financial institutions will be comprehensively strengthened.
In March 2023, the Communist Party of China issued the "Plan for the Reform of Party and State Institutions", and decided to establish the State Financial Supervision and Administration on the basis of the China Banking and Insurance Regulatory Commission. On May 18, the State Administration of Financial Supervision and Administration was inaugurated. On July 20, 31 provincial-level supervision bureaus, 5 municipal supervision bureaus and 306 prefecture-level municipal supervision bureaus of the State Administration of Financial Supervision and Administration were listed in a unified manner, marking an important step in the reform of the financial regulatory system.
The State Administration of Financial Supervision and Administration is responsible for the supervision of the financial industry outside the first industry, the overall responsibility for the protection of the rights and interests of financial consumers, the strengthening of risk management and prevention and disposal, and the investigation and punishment of violations of laws and regulations in accordance with the law.
Rural commercial banks have many fines, and joint-stock banks have high fines.
Among the 2,033 fines, in 2023, rural commercial banks will be fined the most, with a total of 735 fines and nearly 4 fines5.6 billion yuan;Large state-owned banks were fined 575 times, and the amount of fines confiscated was nearly 67.9 billion yuan;City commercial banks were fined 327 times, and the amount of fines and confiscations was about 43.6 billion yuan;Joint-stock banks were fined 327 times, and the amount of fines confiscated was nearly 72.1 billion yuan, the highest amount of fines and confiscations among all types of banks.
Among the fines received by joint-stock banks, the largest fine was that China CITIC Bank was confiscated by the State Administration of Financial Supervision and Administration for 56 violations, including credit business violations and performance appraisal regulations, and the fine was confiscated by more than 2$2.4 billion.
In response, China CITIC Bank said that the issues involved in this punishment all occurred in 2019 and previous years, which fully reflects the requirements of "comprehensively strengthening financial supervision and preventing and resolving financial risks" put forward by the previous judicial authorities on the case of serious violations of discipline and law by Sun Deshun, then president of China CITIC Bank. According to the regulatory opinions, the bank has completed all rectifications and seriously dealt with the relevant responsible persons.
Among the fines received by major state-owned banks, the largest fine was Bank of China for 12 illegal acts, including violating account management regulations, and the People's Bank of China confiscated illegal gains and fined 3,66420,000 yuan. At the same time, the People's Bank of China imposed penalties on 18 relevant responsible persons of the Bank of China, ranging from 10,000 yuan to 3850,000 yuan.
Among the fines received by the city commercial bank, the largest fine was that Bank of Shanghai was confiscated by the State Administration of Foreign Exchange and fined 9,834 for eight illegal facts, including illegal handling of foreign exchange settlement and sales business by branches without foreign exchange settlement and sales qualifications, and inflating the trading volume of the interbank foreign exchange market50,000 yuan. At the same time, the three relevant responsible persons of the Bank of Shanghai were given warnings and fined between 60,000 yuan and 70,000 yuan.
Bank of Shanghai responded that the business involved in this punishment occurred from 2019 to 2021, and some of the business was traced back according to the time of handling, and the problems found were investigated and corrected, and the relevant responsible persons were investigated and held accountable in accordance with regulations.
Among the fines received by the Rural Commercial Bank, the largest fine was issued by the Changsha Central Branch of the People's Bank of China to 515A fine of 50,000 yuan.
Credit and internal control are the hardest hit areas by fines.
In 2023, the penalties imposed by regulators will mainly focus on areas such as credit business, corporate governance, and prevention of internal control and compliance cases.
Among the 2,033 fines, the proportion of fines related to credit business violations was the highest, with a total of 961 fines, including inadequate business management, lax review and approval of credit business, and failure to fulfill responsibilities in the three inspections of loans565 fines related to internal control issues, including key compliance matters such as anti-money laundering, employee conduct and case management, and consumer rights protection.
Ma Tianjiao said that credit business is the core business of banks, and violations include illegal inflow of credit funds into the real estate market, illegal issuance of loans, illegal interbank business, etc., which are the core areas of self-rectification of the banking industry. She pointed out that banks should strengthen the construction of internal risk management systems, improve the risk management system system, and ensure the compliance of various businessesAt the same time, we will strengthen staff training to improve their risk awareness and compliance awareness, and ensure that employees strictly abide by laws, regulations and internal regulations of the bank in their daily work.
For the supervision of credit business, the regulator has issued "three measures and one provision" around the bank's fixed asset loans, working capital loans, personal loans and project financing businesses to promote the standardized development of relevant businesses. Among them, the main contents include: clarifying the standard of entrusted payment, appropriately adjusting the time limit of entrusted payment, adding relevant provisions for emergency payment, and improving the flexibility of entrusted payment;Optimize the calculation requirements for working capital loans, and increase the content related to credit loans, so as to better fit the actual financing situationClarify the requirements for loan terms, guide commercial banks to effectively prevent the risk of loan term mismatch, and optimize the loan structureIntegrate other relevant credit management systems to improve the systematization of the system.
Regarding the trend of banking supervision in 2024, Ma Tianjiao believes that credit business and internal control are still key regulatory areas.
She also said that the supervision of the digital payment field will continue to become stricter, and the supervision will adopt a "zero tolerance" attitude towards the violations of laws and regulations of payment institutions, and the newly issued "Regulations on the Supervision and Administration of Non-bank Payment Institutions" will further strengthen the punishment of violations of laws and regulations of non-bank payment institutions and guide the orderly development of the industryRegulatory requirements for bank data security and compliance are getting higher and higher, and banks need to further strengthen their data governance capabilities, especially in the quality and reporting of regulatory data, which are often punished by regulators.