Fearing a property bubble, mainland regulators have curbed banks' mortgage business
The latest Bank of China loan scandal has come to light at a time when the central government is trying to cool the country's runaway property market and tighten control over property lending.
With the help of a bank manager - and fake identity and other documents supplied by two lawyers - real-estate company Beijing Huayunda pulled off one of the biggest mortgage-loan frauds on the mainland.
Mainland bank officials and regulators have repeatedly vowed to tighten management of banks, step up risk management and strengthen internal monitoring to prevent fraud and corruption.
Government leaders are concerned that soaring property prices will stoke discontent among the lower and middle classes, who say they are being priced out of the housing market.
The leadership also fears that fraud and excessive market speculation could have a destabilising effect on the financial sector.