China’s central bank tightening internal controls ‘to root out potential corruption’

The People’s Bank of China is strengthening internal risk controls to weed out potential corrupt practices, a unit of the Communist Party’s graft watchdog within the central bank said on Thursday.

President Xi Jinping has launched a sweeping crackdown on deep-rooted graft since taking over the party’s leadership in late 2012 and the presidency in 2013. Dozens of senior officials have been investigated or jailed.

The watchdog, the Central Commission for Discipline Inspection, said in a statement its staff in the bank had initiated a “clean government risk prevention and control” system since late 2012.

The effort has involved investigating projects, or people linked to them, that involve power or risk, it said, without naming any individuals or projects.

“To deepen the effect of prevention and control [work], the bureau is strengthening the system’s construction, cleaning up all internal management systems and procedures,” the statement said.

These measures include assessments, propaganda activities and warning systems and people will be held accountable for any problems found, it said, without elaborating.

China’s financial regulators have been under heavy pressure since stock markets collapsed in mid-June following a long bull run, although the statement made no mention of the markets.

The China Securities Regulatory Commission will work to combat conflict of interests and reduce corruption, the anti-corruption watchdog said on Wednesday.