Individual provincial associations organize large, off-site and non-agricultural loans.
Provincial Association is the functional department of rural credit cooperatives (including rural commercial banks and rural cooperative banks, hereinafter referred to as rural cooperative institutions) managed by the provincial government, and specifically undertakes the management, guidance, coordination and service responsibilities of rural cooperative institutions.
The China Banking Regulatory Commission said that as the industry management organization of rural cooperative institutions with financial licenses, the provincial association bears important management and service functions, must accept financial supervision according to law, and firmly establish the subjective consciousness of preventing and resolving financial risks and strictly regulating performance of duties.
In order to effectively strengthen supervision, promote the standardized performance of provincial associations, and promote the reform of provincial associations according to the problem orientation, according to the overall deployment of rectifying market chaos, the former CBRC conducted on-site inspections on five provincial associations in Inner Mongolia, Jiangxi, Henan, Guangdong and Sichuan last year. The inspection found that there were some prominent violations of laws and regulations in the specific performance of duties of five provincial associations.
The CBRC introduced: First, the phenomenon that rural cooperative institutions deviate from the main business of supporting agriculture has not been effectively corrected. Some provincial associations did not actively guide rural cooperative institutions to strengthen rural financial services, and did not evaluate, correct or deal with the problem of "staying in agriculture", which led to a serious deviation of a few county-level rural cooperative institutions from the strategic positioning of supporting agriculture.
Second, the responsibility for risk prevention and control is not in place. Individual provincial associations failed to take the lead in the risk disposal of rural cooperative institutions, and the risk prevention and control was not in place, which led to the continuous accumulation of risks within their jurisdiction and the increase of high-risk institutions, which had a serious impact on local financial security.
The third is to carry out related business in violation of regulations. Some provincial associations have seriously violated regulatory requirements, set up entity enterprises in violation of regulations, and carried out business beyond the scope without approval. Some provincial associations even exceeded their authority to intervene in the business decisions of rural cooperative institutions, and illegally took the lead in organizing the issuance of large-scale, off-site and non-agricultural loans, resulting in large-scale risk exposure.
Fourth, the problem of executives performing their duties in violation of regulations is outstanding. There is a serious lack of internal governance, and there are many irregularities such as executives actually performing their duties without the approval of their qualifications.
Three executives were banned from banking for life.
The China Banking Regulatory Commission said that recently, after a series of legal procedures, such as filing a case, investigating, hearing, deliberation, informing, reviewing and demonstrating, and issuing a decision on administrative punishment, the China Banking Regulatory Commission coordinated the relevant banking regulatory bureaus to impose administrative penalties on violations of laws and regulations found in the on-site inspections of the above five provincial associations.
In terms of institutional punishment, five provincial associations fined 3 1.727 million yuan and confiscated 2.705 million yuan of illegal income. In terms of personnel punishment, 63 responsible personnel of the Provincial Association were disqualified, warned and fined, of which 42 were fined a total of 4.555 million yuan.
In order to further improve the punishment warning function, promote the provincial cooperatives to perform their duties in strict accordance with the law, and form an atmosphere of "above the rate" and obeying the law in the rural credit cooperative system, this on-site inspection particularly highlighted the punishment for the senior managers of the provincial cooperatives, and gave warnings and fines to 4 people in Inner Mongolia, 4 people in Jiangxi, 4 people in Guangdong and 4 people in Sichuan (including retired senior managers). Three senior executives of Henan Provincial Associated Press with serious violations and bad nature were given a life-long ban on banking.
It is reported that in the next step, the CBRC will strengthen its supervision orientation, adhere to legal supervision, strict supervision and fair supervision, and adhere to the principle that offenders will be prosecuted, those responsible will be asked and accountability will be strict. In promoting the standardized performance of provincial associations, in accordance with the idea of "grasping with both hands", focusing on the standardized performance of provincial associations and strengthening service capabilities, we will promote the pilot research on the reform of provincial associations.