trending Market Intelligence /marketintelligence/en/news-insights/trending/Rf1Jd_0cQ6hCKzz70l4o_Q2 content esgSubNav
In This List

China's forex regulator fines 4 banks for rule violations


Banking Essentials Newsletter: 7th February Edition

Case Study

A Bank Outsources Data Gathering to Meet Basel III Regulations


Private Markets 360° | Episode 8: Powering the Global Private Markets (with Adam Kansler of S&P Global Market Intelligence)


Banks’ Response to Rising Rates & Liquidity Concerns

China's forex regulator fines 4 banks for rule violations

China's State Administration of Foreign Exchange fined four lenders, including China Minsheng Banking Corp. Ltd. and Industrial Bank of Korea, for violating rules on providing guarantees for loans issued by offshore banks, Caixin reported Dec. 2.

The other two banks are Xiamen International Bank Co. Ltd. and Hong Kong-based OCBC Wing Hang Bank Ltd.

In addition to monetary fines, the regulator ordered a branch of Xiamen International Bank to suspend sales of foreign currency to corporations for three months. A Beijing branch of OCBC Wing Hang Bank was directed to halt all foreign exchange sales for three months. The four banks were fined between 1 million yuan and 8 million yuan, according to the report.

The regulator criticized the banks for their failure to conduct due diligence regarding transaction details, use of funds and debtors' qualifications and repayment abilities.

As of Dec. 1, US$1 was equivalent to 6.62 Chinese yuan.