China Puts Bank on Jilin's Ex-Boss Under Investigation for Legal, Regulatory Breaches
Liao Shumin
DATE:  Nov 19 2019
/ SOURCE:  yicai
China Puts Bank on Jilin's Ex-Boss Under Investigation for Legal, Regulatory Breaches China Puts Bank on Jilin's Ex-Boss Under Investigation for Legal, Regulatory Breaches

(Yicai Global) Nov. 19 -- China's anti-corruption watchdog is investigating the former chairman of Jilin Bank, a northeastern commercial lender, which has lost almost one-half of its profit over the first half of this year, partly due to loan defaults.

Zhang Baoxiang is suspected of serious violation of law and regulations, the Central Commission for Discipline Inspection said in a statement on its website yesterday. Zhang Baoxiang, also the lender's ex-party chief, stepped down from his two roles earlier this month.

China has tightened control over its lenders this year, particularly rural ones, after problems with Baoshang Bank, Jinzhou Bank, and Hengfeng Bank raised concerns about their health. 

The Dalian branch of Jilin Bank has wrongfully issued CNY580 million (USD82.5 million) in loans, which caused it to lose at least CNY654 million in principal and interest, the Supreme People's Court said in a statement on Nov. 1.

In the first six months of this year, Jilin Bank's net profit fell nearly by one-half to CNY785 million from a year ago due to impairment of assets, its earnings report shows. However, its revenue rose by 17 percent to CNY4.7 billion (USD668.9 million). The lender had assets worth CNY368.1 billion (USD52.4 billion) by the end of June.

This is not the first time that Jilin Bank's executives are under investigation. In November 2013, ex-chairman Tian Xueren was sentenced to life in prison for accepting bribes. That was less than a year before Zhang took over the reins. Moreover, Wang Anhua, Jilin Bank's former deputy governor, was forced to leave the job in December due to suspected disciplinary violations.

Editor: Emmi Laine

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Keywords:   Jilin Bank,Corruption