June 26, 2017 / 9:56 AM / 2 months ago

China's bank regulator cracks down on graft in deposit-raising

BEIJING, June 26 (Reuters) - China's banking regulator has warned lenders against providing jobs, cash, and gifts to government officials or state enterprise managers as part of any effort to solicit so-called public funds as deposits.

In a notice published on Monday, the China Banking Regulatory Commission (CBRC) told banks to strengthen their auditing and performance appraisal system to avoid "the illicit transfer of benefits".

Local CBRC bureaus are required to report suspected discipline violations to the country's anti-corruption watchdog, according to the notice, which is dated June 21.

China is in the midst of a sweeping anti-corruption campaign that has punished more than a million party members, jailed top military figures, and seen the country's insurance regulator and a top banking regulator removed for suspected disciplinary violations, a euphemism for corruption.

Guo Shuqing, who was appointed CBRC chairman in February, has also issued a flurry of policy directives and notices in recent months to shore-up supervision and prevent risk in the country's 232 trillion yuan ($33.92 trillion) banking sector.

"The use of benefits and other unfair competitive measures undermine the integrity of the industry, and the fair and orderly environment of financial markets," CBRC said in a seperate question-and-answer notice. ($1 = 6.8388 Chinese yuan renminbi) (Reporting By Matthew Miller and Shu Zhang)

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