Core Viewpoint - The article highlights regulatory issues faced by Jiangyin Rural Commercial Bank, Wuxi Rural Commercial Bank, and Jiangnan Rural Commercial Bank regarding their fund sales operations, emphasizing the need for compliance and internal control improvements [1][3][19]. Regulatory Findings - Jiangsu Securities Regulatory Bureau conducted on-site inspections revealing systemic issues in fund sales practices across the three banks, including inadequate internal controls and risk management [1][4]. - Specific violations included fund sales personnel lacking necessary qualifications and failure to establish proper risk monitoring mechanisms [2][5][10]. Compliance Actions - Wuxi and Jiangyin Rural Commercial Banks received warning letters, while Jiangnan was ordered to rectify its practices, with a requirement to submit a written report within 30 days [3][4]. Internal Control Issues - Common deficiencies included the absence of long-term investment return assessments in performance evaluations and inadequate conflict of interest management [9][10]. - Jiangnan and Jiangyin banks had personnel involved in fund sales without the required qualifications, and compliance reviews for new fund products were lacking [10][11]. Business Performance - Fund sales are a significant source of fee and commission income for banks, with mixed performance reported in recent financial statements. For instance, Wuxi Rural Commercial Bank's net commission income increased by 3.63% to approximately 137 million yuan, while Jiangnan's decreased by 37% to 388 million yuan [14][15]. Market Context - The article notes that the banking sector's fee and commission income has been under pressure due to market volatility affecting asset management product returns, leading to a decline in intermediary business income [16][18]. - In a low-interest-rate environment, banks are encouraged to diversify their income sources, with intermediary business seen as a strategic focus for growth [18]. Regulatory Environment - The article discusses the tightening regulatory landscape for bank agency sales, with new guidelines set to take effect in October 2025, aimed at enhancing oversight and compliance in fund sales practices [21][22].

Core Viewpoint - The China Interbank Market Dealers Association has rated Dongguan Rural Commercial Bank as a D-class general underwriter, which may lead to the loss of its underwriting qualifications if it remains in this category for two consecutive years [1][5][8]. Group 1: Market Evaluation Results - The evaluation results are the first disclosure following the revision of market evaluation rules in June 2024, which categorized underwriters into general and specialized types [4]. - Among 26 national and 28 local banks, most were rated B-class, with 12 rated A-class, while Dongguan Rural Commercial Bank and two others received a D-class rating [2][5]. Group 2: Underwriting Business Performance - Dongguan Rural Commercial Bank's net commission income has decreased by 35.9% year-on-year to 457 million yuan in 2024, influenced by adjustments in insurance and wealth management product fees [1][9]. - The bank's overall commission income has declined from 1.585 billion yuan in 2016 to 457 million yuan in 2024, a reduction of 71.2% [9]. Group 3: Regulatory and Compliance Issues - The D-class rating may be linked to a fine of 800,000 yuan imposed on the bank in December 2024 for inadequate bond underwriting management and inappropriate insurance product sales to elderly clients [8]. - The evaluation criteria include business scale and quality, with the bank reportedly falling below the bottom 10% in terms of underwriting amounts and issuer numbers [2][6]. Group 4: Financial Performance Impact - The bank's net profit has been declining, with a 12.11% drop in 2023 and a 9.08% drop in 2024, indicating pressure on overall financial performance [10]. - The decline in underwriting qualifications could further impact the bank's intermediary income and overall performance growth [10].