SPDB branch fined over dodgy loans

The country's banking regulator suspended mortgage operations at a branch of Shanghai Pudong Development Bank, the Wall Street Journal reported. The regulator found faked collateral on bank loans and fined the branch US$62,400, temporarily suspended mortgage operations and gave it six months to rectify the problem. The regulator also said the head of the Lujiazui branch will no longer be able to hold any position that requires its approval and that bankers directly involved in fraudulent loans will not be permitted to work in the banking industry again. Shanghai Pudong Development Bank said in October it had discovered faked collateral on 32 mortgage loans valued at US$15.7 million.