Another ten million yuan fine has come from the banking industry. This time, the penalty is China Minsheng Banking Corp.Ltd(600016) .
According to the official website of China Banking and Insurance Regulatory Commission, Shanxi banking and Insurance Regulatory Bureau recently issued a 17.1 million yuan ticket to China Minsheng Banking Corp.Ltd(600016) Taiyuan branch, pointing out that the branch’s financial management and loan business had illegal disclosure or implicit guarantee. In addition, the former president and vice president of the branch were punished together with seven relevant responsible persons.
According to public statistics, four banks received large fines of tens of millions of yuan during the year. Before China Minsheng Banking Corp.Ltd(600016) , Bank of East Asia, Qingdao Rural Commercial Bank Corporation(002958) , e-commerce Bank received fines of 16.74 million yuan, 44.1 million yuan and 22.365 million yuan respectively. In addition to the loan business, the bank’s information collection and management has become a new focus of supervision.
see ten million yuan ticket again
On March 19, the ticket disclosed on the website of the China Banking and Insurance Regulatory Commission showed that China Minsheng Banking Corp.Ltd(600016) Taiyuan branch was ordered to make corrections and fined 17.1 million yuan for six violations. Shanxi banking and insurance regulatory bureau made the above punishment decision on March 16, 2022.
specifically, the six violations mainly include: carrying out bottom-up commitment business without the authorization of the head office, failing to carry out financial accounting in accordance with the accounting principles, untrue records in the official seal use register, failing to make provisions in accordance with the “penetration” principle, issuing entrusted loans actually bearing risks, and providing implicit guarantee in the investment and operation of financial management business
At the same time, seven relevant persons in charge were punished together. Among them, Zhu Xiaopeng, former president of China Minsheng Banking Corp.Ltd(600016) Taiyuan branch, was disqualified from serving as a senior manager in the banking industry for five years China Minsheng Banking Corp.Ltd(600016) Taiyuan branch’s former vice president Luo Ping was disqualified from serving as a senior manager in the banking industry for three years. In addition, Liu Yang and Yang Liu were banned from working in the banking industry for three years; Zheng Yi, Zhao genniu and Yuan Zhihong were warned respectively.
Over the past two years, China Minsheng Banking Corp.Ltd(600016) is a “big ticket holder”. In 2020 and 2021, the bank received the single fine with the highest amount in the banking industry for two consecutive years, and the risk management of real estate loans and financial management business has always been the “hardest hit area” of the bank’s “repeated punishment and repeated offense”.
In July 2020, China Minsheng Banking Corp.Ltd(600016) received a huge fine of 104.9 million yuan from the China Banking and Insurance Regulatory Commission for illegal financing of land transfer fees paid by real estate enterprises, financing of real estate projects with incomplete “four certificates”, illegal transfer of non-performing assets, inadequate review of interbank investment in non breakeven financial products of other banks, inadequate risk isolation of financial business and other violations.
When China Minsheng Banking Corp.Ltd(600016) applied for issuing convertible bonds in June last year, the ticket was mainly inquired by the regulatory authorities and asked the bank to list the rectification situation one by one China Minsheng Banking Corp.Ltd(600016) at that time, the bank said that in view of the irregularities in real estate financing, the bank had strengthened the credit management of real estate enterprises, formulated the annual risk policy, and took the implementation of credit conditions and requirements in real estate lending as the key content of the inspection; In view of the problems of financial management business, asset transactions between financial products have been carried out at a fair price with reference to the market valuation, and special account management has been carried out for problem assets and assets with possible risks.
However, in July 2021, China Minsheng Banking Corp.Ltd(600016) again received a huge ticket of up to 114.5 million yuan, and became the bank with the highest total amount of tickets received last year. According to the announcement of the China Banking and Insurance Regulatory Commission, China Minsheng Banking Corp.Ltd(600016) ‘s interbank, financial management, entrusted loan and other businesses have 31 violations, including: the rectification of some violations found in the preliminary inspection is not in place, or even repeated; Risk isolation is not in place, and improper transactions between financial products and between financial products and proprietary business still occur from time to time; The investment direction of funds is not compliant, and the situation of providing financing for the real estate market or local governments in violation of regulations still exists.
Regarding this ticket, China Minsheng Banking Corp.Ltd(600016) at that time responded that the punishment related matters of the CBRC originated from the special inspection of China Minsheng Banking Corp.Ltd(600016) previous years by the CBRC in 2019. At present, the bank has implemented rectification in accordance with the inspection opinions and dealt with the relevant responsible personnel seriously.
deep in mud
It is understood that the previous China Minsheng Banking Corp.Ltd(600016) internal organizational structure was relatively fragmented and fragmented, resulting in an organizational culture of excessive pursuit of short-term interests. This has also become one of the key points of China Minsheng Banking Corp.Ltd(600016) internal reform in the past year.
At last year’s general meeting of shareholders, China Minsheng Banking Corp.Ltd(600016) president Zheng Wanchun said that the bank was changing the performance evaluation method of its branches and establishing a long-term incentive mechanism. “On the basis of only examining the growth of three indicators of income, expenses and profits in the past, two long-term factors have been added: one is the customer base, how about the number of customers and growth, and the other is the core deposit. It is not a high-cost deposit, but a general deposit. We believe that this core deposit is the basis for the development of commercial banks.” Zheng Wanchun said.
Over the past year, the decline of China Minsheng Banking Corp.Ltd(600016) performance caused the bank’s share price to enter the darkest moment since 2015. As of March 18, China Minsheng Banking Corp.Ltd(600016) a shares closed at 3.73 yuan / share, with a price to book ratio of 0.34, which was the bottom among 42 A-share listed banks.
Some people in the industry believe that the decline in China Minsheng Banking Corp.Ltd(600016) performance is a long-term good move for the new leadership to “squeeze the bubble” and digest the historical burden. However, the geometric effect of this “scrape therapy” has not yet been verified by financial data. In the first three quarters of last year, although the decline of China Minsheng Banking Corp.Ltd(600016) net profit continued to narrow, considering the low base in 2020, the bank has never achieved positive growth.
China Minsheng Banking Corp.Ltd(600016) 2021 third quarter report shows that in the first three quarters of last year, the bank realized a net profit attributable to the parent company of 35.487 billion yuan, a year-on-year decrease of 4.93%; The operating revenue was 130635 billion yuan, a year-on-year decrease of 8.85%.
at the same time, China Minsheng Banking Corp.Ltd(600016) balance sheet has a tendency of “shrinking” to some extent. By the end of September last year, the total assets of the bank were 7.02 trillion yuan, a decrease of 0.71% compared with the end of June 2021 and an increase of 0.94% compared with the end of 2020; Total liabilities amounted to RMB 6.42 trillion, a decrease of 0.93% over the end of June 2021 and an increase of 0.54% over the end of 2020
In terms of asset quality, as of the end of September last year, China Minsheng Banking Corp.Ltd(600016) non-performing loans totaled 72.220 billion yuan, an increase of 2.171 billion yuan over the end of 2020; The non-performing loan ratio was 1.79%, down 0.03 percentage points from the end of 2020; The provision coverage rate was 146.43%, an increase of 7.05 percentage points over the end of 2020; The loan provision rate was 2.62%, an increase of 0.09 percentage points over the end of 2020.
In addition, the issue of China Minsheng Banking Corp.Ltd(600016) shareholders has also attracted great attention of the market. On March 17, China Minsheng Banking Corp.Ltd(600016) announced that due to the bond transaction dispute with Qianhai life insurance, nearly 1.8 billion A-share non tradable shares held by the bank’s shareholder oceanwide group were subject to judicial freezing, judicial marking and waiting freezing, accounting for 4.11% of the bank’s total share capital and 70.46% of the bank’s shares held by oceanwide group and its persons acting in concert.
Although China Minsheng Banking Corp.Ltd(600016) said that the freezing of the shares held by “oceanwide system” would not lead to the change of the bank’s largest shareholder and its persons acting in concert, and would not have a significant impact on the bank’s daily operation and management and corporate governance. However, the “oceanwide system” has been unable to solve the debt problem for a long time, and it still maintains a connected credit of up to 21.6 billion yuan in China Minsheng Banking Corp.Ltd(600016) yet.
regulatory high voltage continuation
Since this year, financial supervision has continued to be under high pressure. According to the statistics of Chinese reporters from securities companies, before China Minsheng Banking Corp.Ltd(600016) the year, at least three banks received large fines exceeding 10 million yuan, including two from the central bank and one from the CBRC.
At the beginning of the year, the Bank of East Asia (China), a foreign bank, received the first ten million level ticket. According to the disclosure of Shanghai Branch of the people’s Bank of China on January 10, the Bank of East Asia (China) was fined 16.74 million yuan and ordered to make corrections within a time limit for violating the provisions on credit information collection, provision, inquiry and relevant management.
Shortly afterwards, Qingdao Rural Commercial Bank Corporation(002958) was fined 44.1 million yuan by Qingdao banking and Insurance Regulatory Bureau on January 26. This is mainly because: the five level classification of loans is inaccurate, the risk control after investment business is not in place, the employee behavior control is not effective, the bank acceptance bill is issued when the loan is transferred to the margin, the effectiveness of data governance is missing, the liquidity loan is misappropriated, the real estate loan management is seriously careless, the credit card overdraft fund flows into the non consumer field, etc.
On January 29, the e-commerce Bank received a large fine of RMB 22.365 million issued by the central bank for violating the relevant provisions of financial statistics management and credit investigation management. At the same time, nine executives from the product innovation department and compliance department of e-commerce bank, as the direct responsible person, were fined a total of RMB 490000.
“The amount of fines and reasons for violations are the direct embodiment of the focus of the regulatory authorities.” A banking analyst said that from this year’s huge fines, it can be seen that in addition to the routine matter of credit flow control, the collection and management of credit information has become a new regulatory focus.
