Bank of China Singled out for Irregularities

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Last updated at: (Beijing Time) Wednesday, January 16, 2002

Bank of China Singled out for Irregularities

State Auditing Administration's auditing on BOC head office, 7 provincial branches and about 150 subdivisions balance sheet 2000 showed that the bank was involved in irregularities. The problems basically remain in providing loans against rules, operating business without clear accounts and granting credit cards and bank drafts in violation of rules and regulations

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BOC involved in irregularities

State Auditing Administration's auditing on BOC head office, 7 provincial branches and about 150 subdivisions balance sheet 2000 showed that the bank's capacity to earn profit and capital sufficiency rate have somewhat increased, but problems basically remain in terms of poor performance of property quality and high costs.

Li Jinhua, director of the Auditing Administration, addressed the ongoing auditing conference that the main problems found through auditing were providing loans against rules, operating business without clear accounts and granting credit cards and bank drafts in violation of regulations. Meanwhile, the administration revealed 22 clues of criminal cases involving a sum of 270 million yuan and 35 persons, who were already handed over to departments concerned for investigation.

Other 8 enterprises facing same problem

Li said the administration also launched duty-related account audit of leaders from 10 key enterprises, of which 8 has been preliminarily audited, with 3.48 billion yuan suspected of breaking the rules and regulations. The uncovered problems were releasing false accounting information, violating rules to trade stocks, evading taxes and so on. Twenty-two criminal cases, involving 59.5 million yuan and 61 persons, exposed by the audit were already transferred to judicial bodies.

About Bank of China

The Bank of China, founded in 1912, stands renowned not just for the most extensive international network but also for the greatest advantage in international financial operations. Over the 89 years since its birth, the bank has played a significant role in developing China's foreign trade, promoting close cooperation with the international financial community.

China's Banking Sector on Way to Success or Failure

Liu Mingkang, governor of the Bank of China, said January 12 the government is supposed to establish a leading reform commission to push the reform of the banking industry steadily forward due to its specialty. He highlighted three tasks facing the government at present. >>details

by PD Online Staff Yang Ruoqian
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