China Policy Lender Reprimands Bankers for Playing Golf
China Development Bank Corp., the world’s largest policy lender, reprimanded bankers for playing golf during work hours as the Communist Party cracks down on extravagance by officials and state-owned company executives.
The lender investigated the issue after receiving tips from the public, according to an article by the Communist Party’s official People’s Daily newspaper that was posted to China Development Bank’s website. The bankers involved have been “solemnly criticized,” it said.
Chinese President Xi Jinping has curbed extravagant government spending since taking office in March, as part of a campaign against corruption and misconduct by officials that have spurred criticism of the Communist Party’s rule. Producers of luxury goods from Chinese distiller Kweichow Moutai Co. (600519) to LVMH Moet Hennessy Louis Vuitton SA (MC) have reported slowing sales since the start of the campaign.
China Development Bank also asked bankers to cut down on overseas trips and hiring cars for official use, according to the article. The bank is also cracking down on mid-level managers hiring secretaries in violation of rules, it said.
Departments are banned from hosting banquets for each other, according to the article. China Development Bank officials are required to stay at government hotels when on business trips and should dine at the hotels’ buffets or at the canteens of bank branches that they visit, the People’s Daily said.
China Development Bank is China’s biggest foreign currency lender, with $248.2 billion of such loans at the end of 2012. The bank, founded in 1994 and wholly owned by the government, carries out the state’s policy objectives.
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