The financial sector will continue to be heavily regulated in 2021. According to statistics released on the official website of China Banking and Insurance Regulatory Commission (CIRC), CIRC and its agencies have issued more than 170 fines to various banking institutions (excluding individuals) this year, with a total fine of more than 163 million yuan, according to the statistics on the time of disclosure of fines, Securities Daily reported. It is worth noting that violation of credit business is still a “high incidence area” for banks to be punished. Among them, the illegal inflow of multi-purpose funds such as personal operating loans and personal consumer loans into the real estate market is still the focus of supervision and punishment. In addition, the supervision of bank financial services is not soft, including tens of millions of yuan of fines Floret senior research fellow at the institute of science and technology Su Xiaorui said in an interview with “securities journal” reporter, regulation and governance power personal credit violation into the cause of the housing, can be seen from two aspects: the financial level, which is unfavorable for the loan concentration management of banking institutions, both also disturb the order of the financial market, give a personal debt increase unnecessary burden; At the property market level, the illegal inflow of personal credit funds into the property market is a performance of “increasing leverage”, contrary to the mainstream tone of “housing is not speculation”, which encourages the property market speculation and disrupts the normal order of the real estate market.
In the view of Su Xiaorui, the follow-up is expected by the real estate authorities and the financial authorities to strengthen cross-sector coordination, the financial authorities will strengthen the management of the concentration of financial institutions, the use of regulatory technology to strengthen the credit monitoring of financial institutions, the financial institutions committed crimes against the wind to increase the intensity of punishment. The real estate authorities will strengthen the qualification of home buyers. For example, Shanghai has launched a “purchase credit” to give priority to those who do not own a home and have social security, a hukou, and family Credit irregularities remain a regulatory priority From the perspective of the causes of punishment, the reasons for the bank credit business punishment include illegal issuance of working capital loans to real estate development enterprises; Illegal loan flows into the property market; Loan “three checks” not due diligence, real estate development loan funds back; The inter-bank investment funds (by way of exchange) are illegally invested in real estate projects with incomplete “Four Certificates”; The main reasons for banks to “step on thunder” are the issuance of real estate development loans to projects with substandard capital ratios.
For example, the Chongqing branch of a major state-owned bank was fined 15.5 million yuan for “issuing credit funds for fake M&A transactions” and “seriously failing to perform due diligence in loan ‘three checks'”.A joint-stock bank’s Hefei branch was fined 1.45 million yuan for “serious imprudence in credit granting” and for extending real estate development loans to projects with substandard capital ratios Among credit violations, the illegal inflow of multi-purpose funds such as personal operating loans and personal consumer loans into the real estate market is still the focus of supervision and punishment Xiamen Bank Co., Ltd. was fined 200,000 yuan for misappropriating funds from personal business loans to the real estate sector, according to administrative punishment information released by the Xiamen Banking and Insurance Regulatory Bureau on Jan. 19 A rural commercial bank in Yunnan province was also fined 950,000 yuan for “illegal flow of credit funds into the real estate market, illegal issuance of false mortgage loans and misappropriation of credit funds.” For example, special inspections have been carried out in first-tier cities such as Beijing, Shanghai, and Shenzhen. In late January, banking and insurance regulators in Shanghai and Beijing announced that they would crackdown on illegal credit flows into the property market Spark Global Limited.