Three Chinese Banks Found To Fail Fiscal Responsibility

Liu Jiayi, the auditor general at China's National Audit Office, has disclosed to local media that three state-owned banks — Industrial and Commercial Bank of China, Bank of China, and China Construction Bank — had all been involved in irregularities during the recent shareholding reforms and these have involved a total of about CNY6 billion.

Liu said that NAO audited the three major commercial banks in 2008 and found some problems with them, which include weak risk control capacities, and major illegal and irregular operations.

Liu disclosed that 20 illegal cases have been identified during the audit of financial institutions, of which, half were from the three banks. Liu stated that NAO would hand-over these cases to the relevant departments.

Liu stressed that the audit and investigation of these three banks and other financial organizations would not affect the Chinese stock markets, instead, it would promote their healthy development, by helping to purify the social environment and promoting social order.

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