Replies to post #246 on Sons And Daughters Of BBCMF China / Asia Technolog

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China News: Banking watchdog enhances on-the-spot inspections

In 2005, the China Banking Regulatory Commission (CBRC), the country's banking watchdog, sent a total of 15,280 inspection teams for on-the-spot examinations of 68,360 financial organizations, according to CBRC figures.

The inspections found that transactions worth 767.1 billion yuan (96 billion U.S. dollars) violated regulations, up 31.34 percent year-on-year, the CBRC said.

And 6,826 people were punished and 59,742 pieces of advice for service improvement and rectification were put forward by watchdogs.

The on-the-spot inspections covered 34 percent of banking services of those financial organizations examined.

Compared with similar inspection work in previous years, the on-the-spot banking inspections in 2005 proved more effective, and inspectors increased punishments of organizations and personnel found to be breaking regulations, according to the CBRC.

The CBRC also enhanced the follow-up protocols after the on-the-spot examinations, helping those financial organizations to raise the qualification rate of rectification and improvement in their work to an average level of 86.38 percent.

A spokesman for the CBRC expressed his hopes that such strict on-the-spot inspections over banks would continue in 2006 so as to protect clients' legitimate interests and sharpen competitiveness of Chinese banks.