Going serious: A man rides an electric bike past the CBIRC building in Beijing. The CBIRC and the CCDI say they will deepen the crackdown on corruption in the financial industry. — Reuters
BEIJING: Chinese authorities warned the nation’s top banking executives that the crackdown on the US$60 trillion (RM264 trillion) industry is far from over in a private meeting late Friday, just as they were about to announce the probe of the most senior state banker in nearly two decades.
Officials from the China Banking and Insurance Regulatory Commission (CBIRC) and the Central Commission for Discipline Inspection (CCDI) called in top executives from at least six big state-owned banks to address the probe of Bank of China Ltd’s former chairman Liu Liange, according to people familiar with the matter, who asked not to be named as the information is private.
The meeting was taking place just as the CCDI announced the investigation of Liu in a one-sentence statement, saying he is suspected of “serious violations of discipline and law.”
The CBIRC and the CCDI said they would deepen the crackdown on corruption in the financial industry, and that bankers should draw lessons from Liu, said the people.
Banking staff, especially senior executives, must comply with laws and regulations and strengthen self-discipline, the people added.
While it’s not uncommon for authorities to call bankers in at short notice after a high-profile probe, the latest warning adds to evidence that President Xi Jinping’s anti-graft campaign is picking up steam even after the claim of initial success last year.
At least 20 financial executives had been probed or penalised since late February. Star banker Bao Fan, chairman of China Renaissance Holdings Ltd, also disappeared almost two months ago.
The CBIRC and the CCDI didn’t immediately comment.
The finance industry is being rocked by a clampdown that started in late 2021 and shows no sign of abating.
The dragnet has become the most extensive ever and dovetails with a broader government shakeup as Xi embarked on a third term in office.
The CCDI said last week it will start a fresh round of checks at more than 30 state-owned companies from China Investment Corp to PetroChina Co, including a “look back” at five financial companies that had been previously targeted.
The announcement of the investigation of Liu came just about a month after he was abruptly removed as the party chief of the nation’s fourth-largest bank. — Bloomberg
