China's banking regulator on Friday released a raft of penalties on four midsize banks and an asset management company totaling over $46 million.
China Minsheng Banking Corp. was fined 104.9 million yuan ($15.3 million) for 30 violations, including illegally providing loans to property developers, offering credit to local governments and failure to disclose financial information, according to statements by the China Banking and Insurance Regulatory Commission. Eight executives of the Beijing-based lender received warnings and fines of CNY50,000 each from the regulator.
China Zheshang Bank Co., a city commercial bank based in eastern China, was fined CNY101.2 million for moving assets off book and providing loans to property developers and land sales projects.
China Guangfa Bank and Hua Xia Bank Co. were fined CNY92.8 million and CNY1.1 million, respectively, for violations of rules covering wealth management products, loan issuance and internal controls.
Meanwhile, China Huarong Asset Management Co., one of the country's largest state bad banks, received a CNY20.4 million penalty for offering loans to individual borrowers and illegally purchasing soured assets from financial institutions.
The penalties on medium-sized banks came after two of China's top four banks--China Construction Bank Corp. and Agricultural Bank of China Ltd.--received hefty fines last week, as Beijing moves to ward off financial risks after easing its lending spigot to stimulate the economy earlier this year.
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