Audit Commission: Three major banks have illegal loans 6 billion yuan

Author: Song Li China Audit Network According to the Wall Street Journal, China's three largest banks said in Tuesday that the Chinese Audit Commission had conducted routine audits of the audit last year and pointed out the illegal loans and irregularities involved in each bank.　　Industrial and Commercial Bank of China, China Construction Bank Co., Ltd. and CITIC Banking Co., Ltd. issued a separate announcement that the audit found that the problem does not affect their operating performance, and will not have a significant impact on the published financial statements. None of the three banks disclosed the size of the offending loans.　　Auditor-General of China Audit Office in February said that the Audit Commission in the last year to ICBC, CCB, Bank of China and other financial institutions jiayi found and investigated a number of major violations, involving the amount of RMB 6 billion (878 million U.S. dollars). ICBC said the audit report pointed out that some branches of the bank in the business operation of some irregularities, there are some weak links in management. The bank said that all the irregularities have been rectified, and take relevant measures to further standardize and strengthen management.　　ICBC is the largest bank in domestic assets. CCB and Citic Bank said that the audit report found that some of its branches in the business operation of illegal loans and lax supervision and other issues. The CCB also said that the audit report also pointed out that there are defraud loan in individual enterprise loan arrangement. The bank said that individual grass-roots branches because of the management is not in place, resulting in individual enterprises and bank staff in collusion with suspected defraud loan cases still occurred.　　The bank said that the vast majority of the relevant illegal loans have now been recovered and that the part of the withdrawal will be withdrawn in the near future.　　Bank of China said last month that the Audit commission found some irregularities in some of its branches and that the individuals involved had been transferred to the judiciary or would face prosecution. Analysts said that after the Chinese government invested trillions of yuan in the restructuring of the domestic banking sector, the internal governance of the bank has improved and the financial situation tends to stabilize. Nevertheless, the risk control mechanism of some branches of these banks remains unsound.