Penalties imposed on errant financiers

PUBLISHED : Tuesday, 09 June, 1998, 12:00am
UPDATED : Tuesday, 09 June, 1998, 12:00am

The central bank yesterday released detailed regulations vowing tough administrative penalties for the heads of financial institutions that contravene banking rules.

The announcement, through Xinhua new agency, coincided with a Shanghai Securities News report that the Guizhou branch of the People's Bank of China had penalised five local finance firms and eight people in charge of the companies for violating bank rules by offering high interest rates to attract deposits.

It said the heads of Anshun Trust & Investment and the Ruifeng branch of Guiyang Commercial Bank had been banned from working for finance firms for 15 years.

For the first time, the central bank detailed penalties including administrative demerits, dismissal and criminal prosecution in an attempt to reduce risk in the country's financial system.

Infringements include illegally raising interest rates, channelling funds into securities markets and imposing unauthorised fees.