Five financial institutions were fined on the same day! Loan | Debt | 5 Companies
On August 18th, the General Administration of Financial Supervision and Administration of China issued six consecutive fines, of which four were confiscated/with fines exceeding ten million yuan.
Three banks were fined on the same day
In the concentrated fines issued this time, three commercial banks were involved: Agricultural Bank of China, Minsheng Bank, and Guangfa Bank. The administrative penalty decisions of the three institutions were: confiscating illegal gains and imposing a total fine of 4420.184584 million yuan, a total fine of 47.8 million yuan, and a total fine of 23.4 million yuan.
Among them, the main illegal and irregular facts of Agricultural Bank of China mainly involve the management of credit disbursement, including the flow of loans from farmers into real estate enterprises, inadequate post loan management of rural personal production and operation loans, conversion of small loans from farmers to fixed deposits, illegal provision of financing to real estate development enterprises, illegal issuance of working capital loans, careless issuance of decoration loans, and careless issuance of commercial housing loans.
The illegal and irregular facts of Minsheng Bank include evading the supervision of entrusted loans and illegally using entrusted debt investment business to finance enterprises; Continuing to issue loans in violation of regulations without rectification and recovery; Inadequate monitoring of financing behavior by government platform companies has led to an increase in government debt; The management issues of equity pledge have not been rectified.
The illegal and irregular facts of Guangfa Bank involve multiple fields such as issuing real estate loans in violation of regulations, issuing working capital loans in violation of regulations, issuing land reserve loans in violation of regulations, issuing loans to enterprises for land reserve projects in violation of regulations, fulfilling senior management responsibilities without qualification approval, providing false feedback on credit asset quality, credit card overdraft funds flowing into real estate development enterprises, and non-standard management of merger and acquisition loans.
AMC violation: circumventing concentration regulation through collaborative business within the group
Among the five financial institutions involved in this concentrated announcement of fines, the other two are China Eastern Asset Management Co., Ltd. and China Huarong Asset Management Co., Ltd.
Among them, China Huarong was fined 711912.65 million yuan and confiscated 711912.65 million yuan of illegal gains for illegally investing in non-public offering stocks, with a total fine of 142382.53 million yuan. Dongfang Asset was fined a total of 5.3 million yuan for providing financing to enterprises under the pretext of acquiring non-performing loans, non clean acquisition of non-performing loans, and violating regulations to evade concentration supervision through collaborative business within the group. Among them, the head office is 4.3 million yuan, and the branch offices are 1 million yuan.
Among the fines released on the same day, there was also an individual involved: Bai Dan, then Secretary of the Board of Directors of China Minsheng Bank Co., Ltd., was warned by the State Administration of Financial Regulation for his responsibility for not rectifying the equity pledge management issues of China Minsheng Bank Co., Ltd.