China’s banking and insurance regulator makes new commitment to address rural bank default risks
A deposit and insurance counter at a bank in Zhengzhou, central China’s Henan Province File photo: VCG
China’s banking and insurance regulator on Sunday pledged to manage risks associated with five rural banks in Henan and Anhui provinces in accordance with laws and regulations, as well as provide financial services for carrying out real estate projects.
In a late-night article posted on its official WeChat account, the China Banking and Insurance News revealed that investigations by public security authorities for nearly three months revealed that the Henan New Wealth Group manipulated the five banks. rural areas of Henan and Anhui and have taken advantage of third-party platforms and fund brokers, among other illegal means of collecting and possessing public funds.
Citing an interview on Sunday with an unidentified China Banking and Insurance Regulatory Commission (CBIRC) official, the report said the local Henan business group falsified original business data and covered up illegal behavior.
Based on current evidence, the vast majority of off-balance sheet customers have no prior knowledge of the Henan company’s alleged criminal actions and have not reaped any additional proceeds or subsidies, according to the report.
As the original back-office data was concealed, deleted or modified by the criminal gang, the two provinces built a customer information and registration system, which would cross-check the back-office data.
Average customers would initially collect deposits, while refunds for those with deposits over 50,000 yuan ($7,399) will be processed later.
The CBIRC official refuted online rumors that the repayment of the July 11 advance payment announcement was due to a gathering incident in Zhengzhou, Henan on July 10.
The regulator has repeatedly publicly pledged since April 30 to deal with the incidents in strict compliance with laws and regulations, and any business that complies with laws and regulations will be legally protected, the official said.
The regulator also reflected on defaulted mortgages during Sunday’s interview.
Owners of a pre-sale real estate project in Jingdezhen, Jiangxi Province, issued a statement about suspended mortgage payments due to late delivery on June 30, attracting media attention.
The CBIRC is keeping a close eye on this issue and strengthening coordination with the Ministry of Housing and Urban-Rural Development and the People’s Bank of China and other government departments to support local efforts to ensure door-to-door deliveries and ensuring the livelihoods and stability of the people, the CBIRC official said. remarked, largely repeating Thursday’s remarks.
Under the guidance of local Party and government committees, banking and insurance regulatory authorities should participate in the relevant working mechanism, according to Sunday’s report.
Banks are called upon to fulfill their obligations in a market-oriented and law-abiding manner, as well as to assume their social responsibilities by encouraging door-to-door deliveries.
In addition, banks are required to develop action plans to close funding gaps and do their part in providing eligible credit, the CBIRC official said, urging banks to strengthen communication with customers and respond to their various requests individually to honor contracts. while safeguarding the legitimate rights and interests of financial consumers.
In addition to this, banks are urged to effectively meet the reasonable financing needs of developers and vigorously support mergers and reorganizations of rental housing and projects, the official noted, expressing optimism that these challenges can all be reasonably managed.