(Yicai Global) March 15 -- Bohai Bank has been slapped with a CNY17 million (USD2.5 million) fine for a number of offences, including breaching clearing management regulations, by the country’s central bank in the Chinese financial institution’s second penalty above CNY10 million already this year.
Bohai Bank was found guilty of 12 violations, including conducting transactions with unidentified customers, opening anonymous accounts or with false names, failing to uphold anti-counterfeit regulations, withholding financial deposits and breaching clearing management regulations, according to an announcement on the People’s Bank of China’s website on March 13.
Nine managers, including the general manager of the financial technology division, the credit approval manager of the credit card division and the general manager of the business operations department, were fined a total of CNY430,000 (USD62,450).
The fine resulted from an inspection by the central bank in 2020 and Bohai Bank has already rectified the problems, Securities Times reported.
But the Tianjin-based lender is paying a heavy price for lax controls and oversight. It was fined CNY16.6 million (USD2.4 million) on Feb. 17 for several offences including unlawfully granting commercial real estate loans, and on Feb. 24 it was penalized CNY8.6 million for 13 violations including the inaccurate calculation of risk-weighted assets and liquidity risk indicators.
Bohai Bank, which was established in December 2005, logged a 10.9 percent drop in net profit in the first three quarters of 2022 from the same period a year earlier to CNY5.4 billion (USD784 million) and a 11.4 percent dive in revenue to CNY20.2 billion (USD2.9 billion), it said.
Editor: Kim Taylor