China’s regulators slapped two banks with multi-million-yuan fines over violations of wealth-management rules, a media report said.
Bank of China and China Everbright Bank and their wealth management units were fined by China’s banking regulator over rules meant to rein in shadow-banking risks, according to a «South China Morning Post (SCMP)» report Sunday. The rules impose restrictions on leverage and ban practices such as providing implicit guarantees against losses, the report said. The rules were announced in 2018, and banks were given until the end of 2021 to meet the new requirements, the report said.
China Everbright Bank was filed 8.3 million yuan (US$1.25 million), while Bank of China was fined 6.6 million yuan, the report said.
The China Banking and Insurance Regulatory Commission (CBIRC) said the rules breaches including having more than a 30 percent market capitalization on a single security across all the wealth products marketed by a bank, and crossing leverage limits, according to the report.
