Punishing Bank's New York Branch Conducive to Healthy Development

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Last updated at: (Beijing Time) Tuesday, January 22, 2002

Punishing Bank's New York Branch Conducive to Healthy Development

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Actions taken against misconduct by the Bank of China (BOC) branch in New York will be conducive to healthy development of the banking industry, a spokesman for the People's Bank of China, the central bank, said Monday.

The spokesman said that the BOC's New York branch was punished by the central bank and the US Office of the Comptroller of the Currency on January 18, and the case indicated the close cooperation between financial regulators of the two countries.

The punishment of the bank branch for irregularities in its management, is a warning to other banks, and is aimed to promote careful management within banks and the healthy development the industry.

The BOC has carried out a number of remedial measures to improve the internal management of the New York branch, including dismissing employees implicated in the case, the spokesman said, adding that the BOC's efforts have made sure that its branches in the United States will be run in a legal and moderate manner.

China is now witnessing a favorable economic development and stable financial framework, and it will continue to improve the supervision and reform of banks, and open this banking sector wider to the rest of the world, the spokesman said.

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