Core Viewpoint - The banking industry is entering a new era of stringent regulation for fund sales, highlighted by recent inspections and penalties imposed on Jiangyin Bank and other local banks for various compliance failures [2][3][5]. Group 1: Regulatory Actions - Jiangyin Bank was publicly penalized for the first time regarding its fund sales business, receiving a warning letter from the Jiangsu Securities Regulatory Bureau [3][5]. - Since the beginning of 2024, there has been a significant increase in penalties related to fund sales, with 15 banks facing regulatory actions for violations, including inadequate internal controls and unqualified personnel [3][5]. - Jiangyin Bank is required to rectify identified issues and submit a written report within 30 days [5]. Group 2: Compliance Issues - Jiangyin Bank's fund sales operations were found lacking in several areas: absence of a risk monitoring mechanism for investor information security, unclear internal controls, and insufficient qualifications among sales personnel [4][10]. - The bank's internal control mechanisms were criticized for not establishing a product admission committee and failing to assess potential conflicts of interest adequately [4][10]. - A notable issue was the presence of unqualified personnel in fund sales roles, which is a common violation in the industry [5][10]. Group 3: Financial Performance - Jiangyin Bank reported a revenue of 3.962 billion yuan for the end of 2024, reflecting a year-on-year growth of 2.51%, with a net profit of 2.037 billion yuan, up 7.88% [8]. - The bank's net interest margin decreased to 1.76% by the end of 2024, down from 2.18% in 2022, indicating ongoing pressure on profitability [9]. - Non-interest income, particularly from fees and commissions, showed a significant increase, with net income from this segment reaching 96.67 million yuan, a growth of 20.74% [9]. Group 4: Future Regulatory Landscape - A new regulatory framework for fund sales will come into effect on October 1, 2025, aimed at enhancing oversight and ensuring compliance within the banking sector [9][10]. - The upcoming regulations emphasize the need for banks to implement performance assessments that go beyond sales metrics, focusing on compliance and customer feedback [10].