In 2021, the punishment intensity of the banking industry hit a new high in three years! The China Banking and Insurance Regulatory Commission, the people's Bank of China and the safe issued a total of 5205 fines, with a total fine of 2.59 billion yuan. 2831 banking institutions were punished. Among them, the agricultural commercial bank and large state-owned banks ranked first, and the joint-stock banks received the largest amount of fines, exceeding 800 million yuan, accounting for more than 30% of the total amount of corporal punishment.
In terms of institutional penalties, in 2021, there were eight banks with a total amount of fines and confiscations of more than 100 million, of which Bank Of China Limited(601988) ranked first with a total amount of 149 million, Industrial And Commercial Bank Of China Limited(601398) ranked second with a total amount of 146 million and Hua Xia Bank Co.Limited(600015) ranked third.
From the distribution of punishment cases, the number of fines in the fields of credit management, anti money laundering, cooperation supervision, settlement and cash management, employee behavior and case prevention ranks first. In addition, real estate related violations and financial services have also become the "hardest hit areas" punished in 2021. In 2021, the number of real estate related fines soared by more than doubled, and the heavily fined funds illegally flowed into the real estate field. Financial business is one of the important areas of heavy fines.
This report is jointly issued by Nancai think tank - 21st century Asset Management Research Institute and geek compliance. The following is the main body of the report.
I. overview of banking penalties in 2021
21st century Asset Management Research Institute and geek compliance according to Geek insight and public data statistics, in 2021, there were 5205 bank tickets publicized on the websites of the CBRC, the people's Bank of China and the safe, with a total amount of 2.59 billion yuan, 2831 punishment institutions and 3587 individuals.
In terms of the number of tickets in recent three years, after the decrease in 2020, the number of tickets will rise again in 2021. The number of fines distributed evenly in each quarter in 2021, reflecting that the supervision has always maintained a high degree of punishment.
In 2021, the number of punished banking institutions remained stable compared with the previous two years, while the number of punished individuals increased significantly compared with the previous two years, reflecting the attitude of strict supervision and accountability and enhancing the effect of punishment and deterrence.
In terms of the amount of fines and confiscations, the total amount of fines and confiscations imposed by regulators on banks reached 2.59 billion yuan in 2021, an increase of 23.8% over 2020, a new high in recent three years.
II. Regional distribution of banking penalties
Statistics show that in 2021, the CIRC issued 32 tickets to banking institutions, with a fine and confiscation amount of 828.76 million yuan, accounting for 32% of the total penalty amount of the bank. The average single ticket is as high as 25.89 million yuan, which is the regulatory institution with the heaviest punishment. Compared with previous years, the punishment of the CIRC authorities continued to upgrade.
In 2021, the head office of the people's Bank of China issued 30 tickets, with a fine of 46.14 million yuan, which remained stable compared with 2020. In 2021, the average amount of a single ticket was 1.54 million yuan, slightly lower than that in 2020.
According to the statistics of geek insight bank supervision punishment data and public data, in 2021, banks in 31 provinces / cities / autonomous regions across the country were subject to supervision punishment (including branches of the Bank Insurance Regulatory Commission, the people's Bank of China and the safe), with 5143 fines and a confiscation amount of 1716.98 million yuan. Generally speaking, Shandong, Zhejiang and Fujian provinces are strong supervision provinces with many fines and heavy fines.
III. overview of penalties of various types of banks: joint stock banks are the most severely punished
After the 21st century Asset Management Research Institute and geek compliance sorted and analyzed the punishment of various types of banks, from the number of fines, the number of fines of agricultural commercial banks and large state-owned banks exceeded 1000, and there were many fines; In terms of the amount of fines and confiscations, joint-stock banks were fined more than 800 million yuan, accounting for less than 30% of the total corporal punishment of the bank, and the punishment was the heaviest.
(Note: in order to facilitate comparison, development financial institutions are included in the statistics of policy banks, and rural small and medium-sized financial institutions such as rural credit cooperatives, rural cooperative banks and rural mutual fund cooperatives are combined for Statistics)
IV. ranking and cause of action distribution of banking punishment institutions in 2021: the total amount of fines and confiscations of 8 Banks exceeded 100 million
In 2021, there were eight banks with a total penalty amount of more than 100 million, , of which Bank Of China Limited(601988) ranked first with a total penalty amount of 149 million, Industrial And Commercial Bank Of China Limited(601398) ranked second with a total penalty amount of 146 million and Hua Xia Bank Co.Limited(600015) ranked third.
From the distribution of punishment cases in Bank Of China Limited(601988) 2021, it has a large number of fines in the fields of credit management, operation management, anti money laundering, settlement and cash management, cooperation supervision and international business. In addition, there are many penalties in the fields of employee behavior and case prevention, internal control compliance and so on. Bank of China has 14 tickets with a confiscated amount of more than 1 million, of which 6 have been punished by the people's Bank of China for violating the anti money laundering law, and many are house related tickets.
Industrial And Commercial Bank Of China Limited(601398) the first and second causes of punishment in 2021 are also credit management and operation management, and the third cause is employee behavior and case prevention. In addition, there are many fines for bank card business, settlement and cash management, cooperation supervision and financial management. Compared with other banks, in 2021, ICBC had significantly more penalties for employee behavior and case prevention, and there were many cases, such as employees misappropriating demolition funds, employees repeatedly participating in private lending and charging interest, and employees embezzling and withholding public funds by taking advantage of their position. Due to the inadequate management of employee behavior, ICBC received multiple fines, exposing the bank's deficiencies in employee behavior management.
Hua Xia Bank Co.Limited(600015) in addition to many fines in the field of credit management, financial management business, bill business and disposal of non-performing assets are also punished. The bank received the largest ticket with a total amount of 98.3 million. The main punishment is the violation of financial business. Hua Xia Bank Co.Limited(600015) many fines have also been given to cover up the quality of credit assets in various ways, including issuing loans to undertake overdue loans of the bank, covering up the quality of credit assets in the form of loan undertaking, and covering up risks by illegally handling loan renewal and extension. The disposal of non-performing assets involves illegally misappropriating credit funds to acquire non-performing assets Failing to carry out non-performing asset transfer business in a public manner.
V. analysis of oversized tickets: 8 tickets with confiscated amount exceeding 50 million
In addition to the above reasons, the occurrence of more than 50 million large fines is also the reason why Bank Of China Limited(601988) , Industrial And Commercial Bank Of China Limited(601398) , China Minsheng Banking Corp.Ltd(600016) , Hua Xia Bank Co.Limited(600015) and other banks rank first in the total amount of fines and confiscations.
According to the statistics of nancaizhiku 21st century Asset Management Research Institute, in 2021, the number of large fines of more than 10 million yuan in the banking industry reached 20, including 8 large fines of more than 50 million yuan and 12 fines of 10 million yuan to 50 million yuan.
In 2021, China Minsheng Banking Corp.Ltd(600016) again received the largest ticket of the year, with a single fine and confiscation amount of about 115 million, followed by Hua Xia Bank Co.Limited(600015) , with a single fine and confiscation amount of 98.3 million yuan.
Bohai Bank received the third largest ticket, with a single fine of 97.2 million yuan.
From the above figure, we can see that except for the 73.456 million super large fines issued by the Export Import Bank of China, the other 7 super large fines are related to the violation of financial management business, specifically involving the mutual trading of financial products, the adjustment of income of financial products, self operated loans to undertake the bank's financial financing, the use of financial management funds to repay the bank's loans Illegal use of proprietary funds and wealth management funds to purchase credit assets transferred by the bank, and failure to effectively separate proprietary business from agency business. The above large fines of China Minsheng Banking Corp.Ltd(600016) , Hua Xia Bank Co.Limited(600015) , China Merchants Bank Co.Ltd(600036) , Industrial And Commercial Bank Of China Limited(601398) , Shanghai Pudong Development Bank Co.Ltd(600000) and other banks are mainly heavy penalties for violations of financial management business. In addition, the reasons for being punished more in the super large ticket include illegal provision of financing, credit funds or financial funds to developers, illegal inflow of real estate, illegal transfer of non-performing assets, inadequate internal control management, etc.
[case 1: China Minsheng Banking Corp.Ltd(600016) received the largest ticket, more than half of which was related to financial management business] in July 2021, China Minsheng Banking Corp.Ltd(600016) received an excessive ticket with a fine of up to 115 million yuan, involving up to 31 violations, including 16 violations related to financial management business, China Minsheng Banking Corp.Ltd(600016) mainly including inadequate rectification of financial management business, mutual transaction adjustment of income between financial products Illegally adjusting the income of financial products, using internal accounts to intercept the floating management fee income of financial products and undertaking risk assets. In addition, China Minsheng Banking Corp.Ltd(600016) did not cooperate with the investigation of the regulatory authorities, and the regulatory authorities found problems repeatedly, so they received the single ticket with the largest amount of confiscation in the banking industry in 2021.
[case 2: Bohai bank's large ticket involved illegal financing from real estate enterprises] Bohai Bank received an ultra large ticket with a confiscated amount of 97.2 million yuan in May 2021. Bohai bank's punishment covers a wide range, mainly involving illegal financing to real estate enterprises, failure to approve related party transactions according to procedures Proprietary business and agency business are not effectively separated, and even provide liquidity support for the due cashing of trust products recommended by agents, and there are many violations in financial management business.
Among them, providing financing to real estate enterprises in violation of regulations includes issuing loans to real estate projects with insufficient capital, issuing loans to real estate projects with incomplete four certificates in violation of regulations, raising funds through interbank investment or financial management to finance real estate projects with incomplete four certificates in violation of regulations, issuing working capital loans to real estate development enterprises Violations such as the credit amount of real estate development loans exceeding the total investment recorded in the project.
According to the data, in the first half of 2021, the real estate loans of Bohai bank accounted for 9.59% of the total loans, and the personal housing loans accounted for 18.87%. The total real estate loans accounted for 28.46%. Non performing real estate loans increased from 2.385 billion yuan at the end of 2020 to 3.696 billion yuan, an increase of 54.97%.
In 2021, Bohai bank was also highly concerned by the outside world because of a case in which 2.8 billion deposits were inexplicably pledged. According to media reports, two subsidiaries of jiminxin deposited 2.8 billion yuan of deposits in Nanjing Branch of Bohai bank, It is used to provide bill financing guarantee for another company that has nothing to do with itself - Huaye Petrochemical Nanjing Co., Ltd. (hereinafter referred to as "Huaye petrochemical"). As a depositor, the group immediately contacted and negotiated with Bohai Bank Nanjing branch after discovering that the deposit was inexplicably pledged on August 19, and asked the bank to effectively protect the legitimate rights and interests of depositors and ensure the safety of depositors\' funds. After several unsuccessful negotiations, Ji Minxin reported the case to Wuxi police on September 3. Subsequently, the regulatory authorities intervened in the investigation. At present, the regulatory authorities are identifying violations and solidifying evidence, and Bohai bank may face punishment and accountability.
Vi. distribution of causes of punishment in the banking industry in 2021: the number of fines in the fields of credit management, anti money laundering and cooperation in supervision ranked first
Among the 9217 punishment cases in 2021, the number of cases in the field of credit management is still the largest, with 3551 cases, accounting for 38.53% of the total, an increase of 22% over 2901 cases in the previous year, and an increase of nearly three percentage points over last year. The number of cases in the field of anti money laundering ranked second as last year, reaching 1460, accounting for 15.84%, a significant increase of 50% over the previous year; The proportion also increased from 12% last year to 15.8%. There are also many reasons for punishment in the fields of supervision, settlement and cash management, employee behavior and case prevention, and corporate governance, 752, 599, 460 and 423 respectively.
In recent years, the number of cases in credit management has increased year by year, and the proportion is large every year. The total number of them will increase from 2752 in 2018 to 2773 in 2019, and then to 2901 in 2020. Until 2021, it will exceed 3000 and reach 3551; Not only is the total number growing, but the growth rate is also increasing year by year, from 0.7% in 2019 to 4.6% in 2020, and finally to 22% in 2021.
VII. Analysis of severe punishment in supervision
1. Credit management: non-standard Internet loan management is the focus of new penalties
After the 21st century Asset Management Research Institute and geek compliance disassembled and analyzed the causes of bank supervision tickets in 2021, it was found that 3551 cases related to the field of credit management appeared in the tickets in 2021. Among them, the top five causes of punishment were the failure of three inspections of loans / lack of due diligence (450 times), the illegal issuance of loans (411 times), the non-compliance of loans according to the agreed use / use (406 times), the failure of loan / credit management (308 times), and the illegal inflow of loan funds into the real estate market / land reserve field (305 times).
Generally speaking, the penalties for credit management by regulators include the whole process of pre credit investigation, examination and approval, guarantee management, loan issuance and post loan management, which reflects that supervision is particularly concerned about the whole process control and accountability in credit management. Specifically, the problems related to the use of loan funds are the hardest hit areas of punishment. At the same time, the problems related to Internet loans are also the new causes of punishment with obvious supervision this year.
1) the misappropriation of credit funds is the hardest hit area of regulatory punishment
In 2021, no matter from the overall statistics of the banking industry, or from various types of banks such as large state-owned banks, joint-stock banks and urban commercial banks, the analysis results reflect that is the most punished for the misappropriation of credit funds. The typical causes of such cases include "the loan is not used according to the agreed purpose / the purpose is not compliant" "Loan funds illegally flow into the real estate market / land reserve field", "credit funds are diverted to the stock market and other capital markets or purchase financial products", "credit funds are diverted to repay loans / interest / advances from bank acceptance bills / provide pledge guarantee for credit business", "credit funds flow back to the borrower's / related person's account", etc.
It can be seen that whether the credit funds are used according to the specified purposes is not only the focus of supervision, but also the difficulty of bank management. from the causes of punishment, it can be seen that the illegal destination of credit funds is mainly the capital markets such as real estate and stock market, as well as the repayment of loans. It is suggested that the bank should focus on and control in the self-examination of daily operation and management.
2) nonstandard Internet loan management is the focus of the new punishment this year
the case of non-standard Internet loan management first appeared in November 2020. In 2021, the cause of the case was punished 19 times and appeared in 8 months, jumping to one of the causes with high frequency of regulatory punishment.
from the perspective of punished institutions, it is mainly large state-owned banks, joint-stock banks, urban commercial banks and private banks that are punished in terms of Internet loans, which are distributed in Henan, Heilongjiang, Inner Mongolia, Shandong, Shaanxi, Yunnan, Guizhou and Chongqing. The typical specific causes of cases are shown in the figure below:
2. Cooperation in the field of Supervision: obstruction of supervision and inspection, repeated investigation and repeated offenders are severely punished
One of the important preconditions for regulators to implement effective supervision is the degree of cooperation and implementation of regulatory requirements by banks. In recent years, fines related to cooperation in supervision have increased year by year. In 2021, cooperation in supervision has become one of the core areas of punishment for banks, and banks should pay attention to and manage it.
Typical causes of action in the field of cooperation with supervision include "failure to provide data or submit information to the supervision (not timely / wrong / missing)", "providing false / concealing important facts to the supervision authority", "exceeding the time limit or failing to submit data such as account opening / change / cancellation to the people's Bank of China", etc.
1) failure to provide data or submit information to the supervisor as required (untimely / false / omitted)
If the information provided to the supervisor is not timely, or even misreported or omitted, it is easy for the supervisor to misjudge the real situation of the bank and lead to regulatory deviation. This year, regulators issued 243 fines including the cause of the case, covering large state-owned banks, joint-stock banks, urban commercial banks, rural commercial banks and other banks. on the surface, such fines are only a problem of cooperation and do not belong to business risk, but they are easy to become the basis for deduction of points when regulators carry out regulatory rating on various banking institutions. It is suggested that banks pay more attention to them.
2) hindering supervision and inspection, and inadequate rectification of supervision opinions
On June 7, 2021, the China Banking and Insurance Regulatory Commission issued a notice on carrying out the "construction year of internal control and compliance management" in the banking and insurance industry (Yin Bao Jian Fa [2021] No. 17), requiring all banking and insurance institutions to deeply explore the internal control and compliance defects behind business problems, clarify risk control points, control requirements and countermeasures, and improve the design of incentive mechanism. Carry out centralized rectification of the problems of repeated investigations and repeated offenders to ensure that the incidence of various problems of repeated investigations and repeated offenders in 2021 is significantly lower than that in 2020.
in the tens of millions of large fines in 2021, in addition to business violations, it also includes the causes of hindering regulatory inspection, inadequate rectification, repeated investigation and repeated offenders, which confirms the serious attitude of regulators to punish repeated investigation and repeated offenders. the typical specific cause of action is shown in the figure below:
3. The punishment related to real estate has soared by more than doubled: the heavily fined funds flow into the real estate field in violation of regulations
With the increase of real estate regulation, at the end of 2020, the central bank and the China Banking and Insurance Regulatory Commission issued the notice on establishing a real estate loan concentration management system for banking financial institutions, dividing banking financial institutions into five grades, setting two red lines of the upper limit of real estate loans and the upper limit of individual housing loans, and strictly controlling the proportion of bank real estate loans. The policy was officially implemented in 2021. In 2021, especially in the first half of the year, many places checked whether credit funds flowed into the property market in violation of regulations, and personal business loans and personal consumption loans became the focus of the investigation. Therefore, in 2021, the number of fines for illegal inflow of credit funds into the property market also increased significantly.
According to the statistics of nancaizhiku 21st century Asset Management Research Institute, there were 468 real estate related fines in 2021, a significant increase of 102.6% compared with the previous year, more than doubling! Among them, the punishment cases with the largest cumulative number of times were the illegal inflow / misappropriation of loan funds in the real estate field, a total of 260 times, "illegal issuance of real estate loans / illegal financing to real estate enterprises" occurred 129 times, and "real estate related loan review / issuance / management imprudence / dereliction of duty" occurred 45 times.
It can be seen that the most serious violation of bank real estate related violations in 2021 is the illegal inflow or misappropriation of loan funds in the real estate field, which is also the focus of regulatory investigation in 2021, which is also consistent with the general policy direction of real estate de financialization.
Secondly, the phenomenon of illegally providing loans to some unqualified real estate enterprises or projects is also prominent, including development loans and personal mortgage loans. For example, there are 38 fines for illegally issuing real estate development loans to projects with substandard capital ratio / insufficient capital / incomplete four certificates, and 14 fines for issuing mortgage loans to buildings that have not been completed and accepted / capped.
Some banks were even used by developers to obtain credit funds through handling fake mortgages. In 2021, there were 16 fines for handling fake mortgage loans. The banks handling fake mortgages included 9 bank branches such as China Industrial And Commercial Bank Of China Limited(601398) Dehong branch, China Citic Bank Corporation Limited(601998) Kunming Branch, Jiujiang Branch of Bank of Jiangxi and Yushan branch of Shangrao bank. Yushan branch of Shangrao bank not only issued fake mortgage loans, but also made fake down payment.
After the real estate loan was restricted by the concentration management policy, the bank bypassed the policy restrictions and was punished for providing loans to real estate enterprises through various alternative ways, such as issuing real estate loans by way / name / financing real estate enterprises in a disguised form, issuing real estate loans through non real estate subjects, and even the bank was punished for concealing the real estate loan data or submitting untrue data.
In terms of the number of house related fines, the bank with the largest number of house related fines in 2021 was Agricultural Bank Of China Limited(601288) , with a total of 41 house related fines. The causes of more penalties were the illegal inflow / misappropriation of loan funds in the field of real estate and the illegal issuance of real estate related loans. The bank with the second largest number of house related tickets is Industrial And Commercial Bank Of China Limited(601398) , with 38 house related tickets, followed by China Construction Bank Corporation(601939) with 32 house related tickets.
4. Corporate Governance: heavy penalties for illegal related party transactions
Corporate governance is a big management concept, which covers many aspects, such as three meetings management, shareholder equity management, directors, supervisors and senior personnel management, related party transaction management, performance compensation management and so on. The regulatory fines for corporate governance are also complex. Sorting out the relevant fines in 2021, it can be seen that the directors, supervisors and senior personnel are punished most for issues related to qualification management and related party transaction management.
1) the qualification of directors (directors) and senior executives has not been approved by the regulator
In the past, the problem that the directors, supervisors and senior staff did not obtain the post approval of supervision mainly occurred in small and medium-sized banks and regional banks, but such problems also occurred in large state-owned banks and joint-stock banks in 2021, which shows that the supervision is not a formality and there is a more stringent trend , In the middle of the year, it was also revealed that the qualification of vice president of a branch of a large state-owned bank was cancelled because the proposed personnel were not truthfully reported, and there were non-performing loan liability determination and reconsideration, etc. In view of the management trend of stricter supervision, banks should also more strictly manage the qualifications of managers at all levels of the bank.
2) related party transaction management issues
No matter from the overall perspective of the banking industry, or from the perspective of large state-owned banks, joint-stock banks, urban commercial banks, rural commercial banks and other types of banks, the number of cases related to the management of related party transactions ranked high, reflecting that the management of related party transactions is the most severely punished sub field in corporate governance.
Typical causes of action in related party transaction related fines include "non-compliance / inadequate management of related party transactions", "non-compliance of review and approval procedures of related party transactions", "issuance of credit loans to related parties", "excess of credit balance of related parties over regulatory proportion", etc.
Generally speaking, the management mechanism, management process, related party credit extension and related party loan issuance of related party transactions are the key points of supervision and control. In particular, the vicious risk events in the banking industry in recent years are often accompanied by the problem of the effectiveness of corporate governance. Some large shareholders of small and medium-sized banks infringe on the interests of banks through related party transactions and interest transmission, Cause significant negative impact.
In 2021, the CBRC made public the list of major illegal shareholders to the public in four batches, and issued the measures for the supervision of the behavior of major shareholders of banking and insurance institutions (Trial) (Yin Bao Jian Fa [2021] No. 43) and the notice on matters related to further strengthening the commitment management of shareholders of banking and insurance institutions (Yin Bao Jian Ban Fa [2021] No. 100) Put forward normative requirements for related party transaction management, and suggest banks to strengthen attention and management.
5. Frequent large fines for financial management business, and urge banks to return to the essence of agency financial management
In 2021, there were 39 cases of punishment for financial management business, which occurred 183 times, of which 5 cases occurred 10 times or more, followed by: illegal financial investment, illegal adjustment / adjustment of financial income, non-compliance of financial sales, non real investment of financial funds for designated investment objects Failure to disclose information timely and accurately in accordance with the sales documents. It mainly involves the following violations: financial management business is not separated from proprietary business, mutual adjustment of income between financial products, illegal provision of commitments or guarantees, illegal investment of financial funds, illegal sales, etc. specifically:
(I) financial management business is not separated from proprietary business, including: agency business is not effectively separated from proprietary business, financial management funds are connected to the bank's proprietary assets, proprietary loans undertake the bank's financial financing, use financial management funds to repay the bank's loans or purchase the bank's transferred credit assets, and financial products are not managed, accounted and accounted separately.
(II) mutual adjustment of income between financial products, such as non separation / mutual transaction between financial products, direct or indirect investment of financial funds in financial products issued by this bank or other banking financial institutions, etc.
(III) providing promises or guarantees in violation of regulations, such as making profit and loss commitments for the sale of non breakeven financial products in violation of regulations / illegally selling financial products in a misleading way, providing financing to local governments in violation of regulations and requiring local governments to guarantee financial funds, etc.
(IV) illegal investment of financial funds, including illegal investment of financial funds in high-risk assets, illegal financing of financial funds to real estate enterprises, unreal investment of financial funds in designated investment objects (such causes of action have reached 11 times), proportion of non-standard assets exceeding regulatory indicators, and new assets whose investment maturity date of old financial products exceeds the specified period, etc. Industrial And Commercial Bank Of China Limited(601398) Bank of Guangzhou even committed irregularities in investing financial funds or undertaking non-performing assets.
(V) violation of laws and regulations in the sales process: in case of non-compliance in financial management sales, the number of such punishment cases has reached 12, and there have been 10 such punishment cases for failure to disclose information in a timely and accurate manner in accordance with the sales documents. In addition, it also includes failure to report the sales of financial products to the regulatory authorities at the specified time, sales of equity investment financial products to ordinary individual investors Purchasing financial products on behalf of customers.
In addition, the problems in the information disclosure of financial products have also attracted increasing regulatory attention, including the issuance of investment lists inconsistent with the facts, the fact that the investment lists of financial products do not reflect the real situation or do not fully reflect the risks, the failure of financial business to disclose information in accordance with the regulations, and the punishment of violations such as non-compliance and non-standard information disclosure of financial products.
Hua Xia Bank Co.Limited(600015) there are also violations of illegal sales of financial products without real investment, calculation basis and sufficient information disclosure. No real investment means that investors buy "false financial management". This kind of "false financial management" is different from "flying order". The "false financial management" is issued by the bank, but there is no real investment, and the "flying order" is not a product issued by the bank. The background of such "fake financial management" is that previously, bank financial products have become an important means for banks to absorb deposits.
2021 is the last year of the transition period of the new regulations on asset management. In order to urge banks to rectify as soon as possible, meet the requirements of the new regulations on asset management, and truly return to the essence of customer financing, some large fines in 2021 mostly involve financial management business. From the perspective of punishment direction, a large number of fines point to urging the separation of bank financial management business from self operated business, standardized and independent operation of financial management business, improving the transparency of information disclosure of financial products, putting an end to the pooling operation of financial funds, regulating income between financial products, etc.
VIII. Summary and Prospect
2021 is destined to be an extraordinary year. The real estate regulation has been stepped up at all levels to investigate the illegal inflow of credit funds into the real estate market. The transition period of new asset management regulations expires at the end of the year. In order to urge banks to rectify their financial management business, large fines have been issued continuously, and the anti money laundering efforts of the central bank have been stepped up at the same time. At the same time, many heavy regulatory policies or regulations have been issued one after another, Including the notice on further standardizing the Internet loan business of commercial banks, the notice on preventing loans for business purposes from flowing into the real estate field in violation of regulations, the Interim Measures for the management of the sales of financial products of financial management companies, the notice on regulating the management of cash management financial products, the measures for the supervision of the behavior of major shareholders of banking and insurance institutions (for Trial Implementation), etc.
From the punishment trend and characteristics of the whole year, in order to cooperate with the regulation of real estate, the punishment intensity related to real estate will be significantly increased in 2021. Financial management business and real estate have become two important areas of heavy penalties for large fines. Whether providing financing to real estate through credit business or financial management business, they will be severely punished. In addition to being punished for illegal housing, the financial business and self operated business have not been effectively separated or isolated from risks, and the adjusted income of financial products are the hardest hit areas of financial business punishment in 2021.
With the introduction of a number of policy documents this year to strengthen the supervision of major shareholders of financial institutions, fines in the field of corporate governance have also increased significantly, and related party transactions have become one of the focus of punishment. With more and more Internet loan businesses, new punishment focuses such as non-standard Internet loan management have emerged in the field of credit management.
Looking forward to 2022, under the trend of real estate de financialization, strictly control the illegal inflow of funds into the real estate market, and it is expected to continue to maintain no small punishment. With the formal implementation of the new asset management regulations, the financial management business is expected to continue to maintain a high regulatory pressure. Major shareholders of financial institutions have caused risks to financial institutions. It is expected that related party transactions between financial institutions and major shareholders will still be the focus of supervision and monitoring.
