China Economic Review

China fines record number of banks as deleveraging drive continues

China’s financial watchdog has issued a record number of fines to the country’s banks in the last 20 months as Beijing continues to attempt to stamp out financial risk, Caixin reports.

The China Banking and Insurance Regulatory Commission (CBIRC) has hit banks with Rmb 4 billion ($585 million) of fines since early 2017, four times the total issued over the commission’s entire 14-year history prior to last year.

The rate comes to over 110 fines a month under the tenure of Guo Shuoqing, compared to just 26 a month between 2003 and 2016.

Recently, the fines have targeted bad loans, an area of particular concern for the central government, which launched a widespread deleveraging campaign earlier this year.