In October only.....it is amazing that officials are reporting this. Apparently there have been several instances where the runs on the banks have been widely witnessed.
10 financial institutions were fined 4 insurance intermediaries for "return"
2019-11-01 09:19:34
Source: Financial Investment News
In October, Sichuan’s banking security supervision system and the People’s Bank of China Chengdu Branch issued 14 tickets.
In October, the strict supervision of the Sichuan financial industry continued. According to public information statistics, Sichuan Bank's insurance supervision system at all levels and the Chengdu Branch of the People's Bank of China disclosed a total of 14 tickets in the month,
involving 10 financial institutions. It is worth noting that there are 4 insurance intermediaries, accounting for nearly half of the total.
In addition, the main reason for the “detonation” of banking institutions is still focused on loan violations.
Banking institutions: Loan business violations frequently
On October 23, Sichuan Bank Insurance Regulatory Bureau issued two tickets, pointing out the violations of Huaxia Bank ( ,
diagnostic stock ) Chengdu Xinjin Sub-branch. According to the information of the ticket, Huaxia Bank Chengdu Xinjin Sub-branch was fined 550,000 yuan for “the loan supervision was not strict, the loan was used to return the loan principal and interest of the borrower's affiliated company; and the bank acceptance bill without real trade background” was fined. Yang Wenjun was responsible for the main leadership and was warned and fined 70,000 yuan.7.56 +0.93%
Previously, the reason for the receipt of the ticket by the Shengli Street Sub-branch of the Sichuan Linshui Rural Commercial Bank (formerly the Suixian County Rural Credit Cooperatives Shengli Street Credit Cooperative) also involved the loan business violation. Because “the pre-lending investigation did not perform due diligence, the authenticity, accuracy and completeness of the relevant loan information and the use of the loan were not carefully verified, the loan funds were misappropriated, and the prudent operation rules were seriously violated.” The Shengli Street Branch of Sichuan Linshui Rural Commercial Bank was A fine of 250,000 yuan was imposed. The direct responsible person Yuan Wei was warned and fined 70,000 yuan.
In fact, from the point of view of the banking institution's regulatory notices disclosed this year,
the loan violation is still the main reason for the punishment, and many banks have “stepped on the thunder”. Mainly including pre-lending investigations are not due diligence; illegally issuing personal business loans, consumer loans , mortgage loans; serious violations of prudent operating rules, personal mortgage loans before the loan investigation seriously dereliction of duty; loan management seriously dereliction of duty.
In the eyes of the industry, the “three-check” system of loans, ie pre-lending investigations, loan-time review, and post-loan inspections, are important for preventing credit risks. The “three investigations” of bank loans are not strict; it reflects that the bank risk warning mechanism is not comprehensive enough. Inadequate lending or credit fund supervision may lead to borrower default risk and fraudulent loans , which will lay a risk hazard for bank credit funds security, which may affect the bank asset quality and cause certain non-performing asset pressure.
Insurance institution: Intermediary "rebate" was fined
In October, insurance intermediaries remained the “hardest hit” for penalties, and a total of four insurance intermediaries received tickets. Among them, Pingan Chuangzhan Insurance Sales & Service Co., Ltd. Sichuan Branch was warned and fined 10,000 yuan for “insurance sales practitioners giving benefits other than those agreed by the policyholders’ insurance contract”; at the same time, Midland Insurance Insurance Co., Ltd. The company's Sichuan branch, Sichuan Jiacheng Insurance Sales & Service Co., Ltd. and Sichuan Boguangcheng Insurance Agency Co., Ltd. were all punished for “insurance sales practitioners using professional convenience to obtain illegitimate interests for other individuals”.
According to the "Measures for the Supervision of Insurance Sales Practitioners", insurance companies and insurance agencies shall regulate the sales behavior of insurance sales practitioners. It is strictly forbidden for insurance sales practitioners to give or promise to insured, insured or beneficiaries in insurance sales activities. Interests other than those stipulated in the insurance contract; use of administrative power, position or professional convenience, and other improper means to force, induce or restrict the insured to enter into an insurance contract, or to obtain illegitimate interests for other institutions or individuals. If one of the insurance sales practitioners has any relevant behavior, the China Banking Regulatory Commission shall order it to make corrections, and may adopt relevant regulatory measures such as public disclosure to the public and supervisory talks with senior management personnel. At the same time, in accordance with laws and administrative regulations, the insurance sales practitioners and related insurance companies and insurance agencies shall be punished.
Since the beginning of this year, due to a number of violations of laws and regulations, insurance intermediaries have repeatedly become the "regular guests" of the ticket list. Under this circumstance, the supervision of insurance intermediaries, including professional insurance intermediaries, has continued to increase. The "2019 Insurance Intermediary Market Chaos Remediation Work Plan" issued in April clearly requires insurance intermediaries to strengthen internal control management, prevent operational risks, and focus on rectification whether to assist insurance companies in obtaining fees through fictitious intermediary services; Approved non-insurance financial products ; whether to give benefits other than those stipulated in the insurance contract of the insured, the insured, and the beneficiary; whether to conduct the practice registration of the sales personnel according to the regulations. The industry believes that under the continuous supervision, the phenomenon of intermediaries hitting the ball and drilling holes is expected to be improved.
Personal ticket: "double penalty system" continues to increase the code
On the other hand, the penalties for practitioners have also increased significantly this year. Take the October ticket as an example, all involving personal punishment. For example, according to the disclosure of information by the Chengdu Branch of the People's Bank of China, Securities ( ,
medical stock ) Mianyang Xingda Street Securities Business Department “has not fulfilled the customer identification obligation in accordance with the regulations”, the People's Bank of China Mianyang City Center Branch has 200,000 yuan Fine, and a fine of 10,000 yuan for Jiang Wenying of the sales department. While Sichuan Hejiang Rural Commercial Bank was fined 200,000 yuan by the People's Bank of China's Zhangzhou City Center Branch for “violation of anti-money laundering laws and regulations”, one directly responsible person was also punished.12.30 +0.57%
In the opinion of analysts, financial institutions need specialized and compliant operations, and it is necessary to supervise employees. The root of risk management lies in the management and restraint of human behavior. Through strict punishment, it helps to avoid “stepping on the red line” in the process of exhibition industry. Just in May of this year, the China Insurance Regulatory Commission issued the "No. 23 Document", which required "serious supervision and discipline and accountability treatment" to thoroughly rectify the interests collusion and relationship ties behind financial chaos, and to violate the law and regulations of bank insurance institutions. Increase accountability.
Under the accountability system, taking the banking industry as an example, according to incomplete statistics,
as of the end of the third quarter, more than 1,200 related personnel were subject to administrative penalties, of which 62 were disqualified from senior management and 37 were “top”. Penalties, forbidden to work in the banking industry for life.
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