China regulator slaps three banks with $29m fine for industry malpractice

The banks violated proper lending practices amongst other multiple transgressions.

Bloomberg reports that China’s financial regulator intensified its crackdown on rooting out corporate wrongdoing after it imposed a total of $29m (183m yuan) on three banks, which represents the largest penalty since the country combined its banking and insurance regulators last March. 

The China Banking and Insurance Regulatory Commission imposed penalties on China Merchants Bank Co., Industrial Bank Co. and Shanghai Pudong Development Co. for multiple violations in lending practices and understating of risky assets.

More than $455.56m (2.9b yuan) of penalties and confiscations of funds were imposed on 1,877 financial institutions in 2017 which represents a a 10-fold surge from the previous year.

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