Executives from Bank of Communications are in the dock in China
BEIJING - Bank executives and property developers alleged to have fraudulently borrowed 9.8 billion yuan ($1.44 billion) from Bank of Communications have reportedly gone on trial in China.
The alleged fraud against Bank of Communications would be the largest banking fraud in the country's history, with around half the money reportedly already recovered, with 4.6 billion yuan remaining on the bank's books as non-performing loans.
Bank of Communications posted a $1.16 billion net profit for the first three months of 2009, representing an almost 40% quarter-on-quarter increase, with an unnamed bank spokesman reportedly claiming the bank has set aside provisions and that the alleged fraud will not have an impact on the bank's earnings for 2009.
Officials began investigating the case in 2007, and police are reportedly still attempting to locate former regional president Liu Changming, who is suspected of involvement in the alleged fraud.
Bank of Communications is China's fifth largest bank by assets and is 19% owned by UK-based HSBC, which has sought to expand its Chinese business in recent years, returning the bank to its Hong Kong and Shanghai 19th century origins.
More on Regulation
"Clarification is now urgently needed" on counter-cyclical buffers, says JFSA deputy commissioner
Data from several clearers submitted to illustrate impact on bank leverage ratios
CPMI and Iosco unveil proposals for unique transaction identifiers
Lapse rate for unique identifiers is rising
Sign up for Risk.net email alerts
Catch up with the debate at OpRisk's flagship London conference
Sponsored video: Elseware
Oxford professor David Vines argues that the carrot is as important as the stick
Sponsored webinar: IBM
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.