Mainland lender China Everbright Bank, which is undergoing restructuring for a planned stock listing, has found 10 irregularities such as illegal lending and fraud involving 1.33 billion yuan over the past three years, according to a statement posted online yesterday.
The cases have resulted in direct losses of 63.9 million yuan and 119 million yuan in bad loans, Tang Shuangning, the newly-appointed chairman of China Everbright Group and former vice-chairman of the China Banking Regulatory Commission, said in the statement.
'There remains a large gap between our management structure and system and modern operations. Our risk control is seriously flawed,' Mr Tang said.
Everbright Bank is shoring up its balance sheet and management as the lender will receive a capital injection of up to 20 billion yuan from Beijing's Central Huijin Investment.
Market sources earlier indicated that the bank would sell a stake to a strategic investor and seek to list its shares after the injection.
The People's Daily yesterday cited Mr Tang as saying the lender would complete the restructuring by September, aiming to list next year.