Chinese lenders are facing growth pressure and rising fraud cases as data showed the official bad-loan ratio had climbed to 1.81% by the end of June.
On July 7, Bank of Ningbo said an employee had improperly handled USS 480 million worth of short-term debt instruments. Also, China CITIC Bank and the Agricultural Bank of China both discovered fraud in their bill financing business.
The Chinese banking regulator said it will enhance monitoring of risks in city commercial banks and small financial institutions in rural areas. The screening will cover bill financing, wealth-management products and bond investment.
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