Xin Lang Cai Jing·2025-11-13 02:31Core Insights - The banking sector in Chongqing is facing increased regulatory scrutiny, with multiple banks receiving fines for various violations, indicating a trend of heightened enforcement in the industry [1][8]. Regulatory Actions - Industrial Bank's Chongqing branch was fined 4.2 million yuan for serious violations, including inadequate loan "three checks," poor credit management, and evasion of recording regulations [3][4]. - Chongqing Bank was fined 2.2 million yuan for similar issues, including inadequate loan "three checks" and imprudent investment practices [5][9]. - Hengfeng Bank's Chongqing branch was fined 2.6 million yuan for covering up bad loans and failing to manage investments properly [1]. Violations and Consequences - The violations at Industrial Bank included multiple serious issues such as inadequate loan checks, misclassification of assets, and poor management of non-standard investment businesses [3][4]. - Several individuals associated with these violations received warnings or fines, highlighting accountability within the institutions [3][5]. Industry Trends - In the third quarter of 2025, banks received a total of 1,448 fines amounting to 829 million yuan, representing an 84.63% year-on-year increase, with credit business violations being a significant concern [8]. - The trend of violations has shifted from real estate to other areas, including the repayment of bad loans and investment in stocks and funds [8]. Financial Health of Chongqing Bank - As of July 2023, Chongqing Bank's total assets reached 1,008.7 billion yuan, but the bank's risk management shortcomings have been exposed by repeated fines [7]. - The bank's non-performing loan ratio stood at 1.17% as of mid-2025, with declines in key capital adequacy ratios compared to the end of 2024 [7]. Expert Opinions - Experts attribute the frequent violations to a combination of factors, including banks prioritizing short-term performance over risk management and a lack of compliance systems in rapidly expanding new business areas [10]. - The increased regulatory penalties serve as a warning about management vulnerabilities and signal a normalization of stringent regulatory oversight in the banking sector [10].