China tightens anti-corruption measures in finance

China tightens anti-corruption measures in finance

Authorities from China have warned the nation’s top bank executives that tight controls on the $60 trillion industry are nowhere near over.

Officials from the China Banking and Insurance Regulatory Commission (CBIRC) and the Central Commission for Disciplinary Inspection (CCDI) have called on at least six state-owned banks to turn their attention to an investigation into former Bank of China chairman Liu Liang, according to sources who requested that remain anonymous because it is private information.

The meeting came after the CCDI announced launching an investigation into Li’s business. They cited allegations that the president of the Bank of China has serious disciplinary and legal violations, reports Bloomberg.

The CBIRC and CCDI said they would continue to investigate and take legal action against corruption in the financial industry. Moreover, they added that bankers should learn from Lee’s example: Bank staff, especially senior management, should comply with laws and regulations, and strengthen self-discipline, according to sources.

Earlier results of the investigation

While it is not unusual for authorities to send such messages to bankers shortly after a major investigation, the warnings indicate that Chinese President Xi Jinping’s anti-corruption campaign is gaining momentum, especially after it proved successful last year. Since February, at least 20 directors of financial institutions have been under investigation. The chairman of the banking company, Bao Fan, disappeared almost two months ago.

At the beginning of his third term, Xi already announced the restructuring the financial regulatory regime. According to reports, the Central Financial Affairs Commission (CFWC) will be reconstituted to involve the party in the sector’s work changes, such as changing personnel and adopting anti-corruption measures.