Core Viewpoint - The case of Liu Mouquan highlights significant flaws in the banking risk control system, particularly in the area of loan approval and collateral management, leading to substantial financial losses for the banks involved [1][3][4]. Summary by Sections Loan Fraud Details - Liu Mouquan, who did not meet bank loan requirements, used rented live cattle as collateral to fraudulently obtain over 10 million yuan in loans from two banks by creating fake business licenses and contracts [1][2]. - He initially secured a loan of 4 million yuan in June 2022, using 297 rented cattle as collateral, but misused most of the funds to pay off personal debts [1][2]. - In August 2022, he took out another loan of 5 million yuan under the same fraudulent conditions, again diverting the funds for personal use [2]. Legal Consequences - Liu Mouquan was convicted of loan fraud and obtaining loans through deception, resulting in a combined prison sentence of 13 years and a fine of 300,000 yuan [3][4]. - He is required to repay approximately 827.75 million yuan to one bank and about 489.94 million yuan to another bank due to his fraudulent activities [3]. Banking Risk Control Failures - The case reveals critical deficiencies in the banks' risk control systems, including inadequate pre-loan assessments and failure to verify the true ownership of collateral [4]. - There was a lack of a dynamic management mechanism for collateral, which allowed Liu to repeatedly dispose of the collateral without detection [4]. Recommendations for Improvement - Industry experts suggest leveraging technology, such as IoT, to enhance monitoring of live assets, including real-time tracking of cattle health and location [5]. - The introduction of insurance for live assets and government risk compensation could further mitigate risks for banks involved in agricultural lending [5].