Minsheng’s branches fined for unapproved sales

Source: Xinhua | 2017-05-04

FOUR Shanghai branches of China Minsheng Bank have been fined for selling unauthorized banking products, the regulator announced yesterday, underlying tighter scrutiny over financial risks.

The bank was penalized for “ineffective internal risk control and violation of prudent operations.”

The branches were fined a total of 1.55 million yuan (US$225,000) by the Shanghai Office of the China Banking Regulatory Commission.

The fine followed a recent fraud case in a Beijing branch of Minsheng, whose head allegedly swindled 1.65 billion yuan from nearly 150 customers by selling unauthorized wealth-management products, according to the bank.

Guo Shuqing, chairman of CBRC, has pledged to “administer the strongest medicine” in response to what he described as “chaos” in the banking system, a Caixin magazine’s report said.

The CBRC is targeting shadow banking products and lending between financial institutions in the interbank market.