Core Viewpoint - The case of Liu Mouquan reveals significant flaws in the banking risk control system, particularly in the management of livestock asset-backed loans, leading to substantial financial losses for the banks involved [6][7]. Group 1: Loan Fraud Details - Liu Mouquan, who did not meet bank loan requirements, fraudulently obtained over 10 million yuan in loans by using rented cattle as collateral and falsifying documents [1][2]. - He secured loans of 400 million yuan and 500 million yuan from two banks, misusing the funds primarily to pay off personal debts and rent cattle [2][3]. - Liu Mouquan also engaged in fraudulent activities on behalf of friends, facilitating additional loans through similar deceptive practices [4][5]. Group 2: Legal Consequences - The court found Liu Mouquan guilty of loan fraud and obtaining loans through deceitful means, resulting in a combined prison sentence of 13 years and fines totaling 300,000 yuan [5]. - He is required to repay approximately 827.75 million yuan to one bank and about 489.94 million yuan to another bank as part of the restitution [5]. Group 3: Banking Risk Control Failures - The case highlights deficiencies in the banks' risk management systems, including inadequate pre-loan assessments and lack of verification of collateral ownership [7]. - There was a failure to implement a dynamic management mechanism for collateral, allowing Liu to dispose of the collateral without detection [7]. - The absence of independent valuation and monitoring of livestock collateral contributed to the risk exposure [7]. Group 4: Industry Recommendations - Experts suggest leveraging technology, such as IoT, to enhance monitoring of livestock assets, including real-time tracking of their health and location [8]. - The introduction of insurance for livestock assets and government risk compensation could mitigate potential losses for banks [8].