Since July, the frequent release of penalties in the Chinese banking industry has become the focus of industry attention.
According to official data reported by the “Daily Economic News,” in a little over a month since July (up to August 9), there have been 1357 penalties directly targeting illegal activities within the banking industry, leading to sanctions against 32 practitioners.
Specifically, the reasons for practitioners being banned mainly focus on violations in the credit business sector, inadequate management of employee behavior, and violations of prudent operation principles. The penalties have affected various types of banking institutions, including state-owned major banks, joint-stock banks, city commercial banks, and rural commercial banks.
Looking at the penalties announced in the latter half of the year, violations in the credit business sector have become one of the main reasons for practitioners being banned. This includes but is not limited to improper methods of deposit absorption, loan disbursement, lack of rigorous loan approval processes, and poor post-loan management.
As one of the main sources of profit for banks, the compliance of credit business directly impacts the asset quality and profitability of banks.