Bank Fines Surge in China as Watchdog Battles Rising Bad Loans
- Penalities up fourfold under Chairman Guo, UBS data show
- Most recent punishments were for hiding non-performing debt
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China’s banking regulator is handing out fines at a record pace, as it battles a build-up of financial risk.
The China Banking and Insurance Regulatory Commission, along with its predecessor agency, has issued fines worth about 4 billion yuan ($585 million) since Chairman Guo Shuqing took charge of the watchdog in early 2017, compared with a total of some 1 billion yuan in the previous 14 years of the regulator’s history, according to data compiled by UBS Evidence Lab. The bank regulator, which merged with the national insurance agency in March, has averaged more than 110 fines a month under Guo, compared with 26 a month between 2003 and 2016.