04 2016
AsiaNews.it Twitter AsiaNews.it Facebook
Geographic areas




  • > Africa
  • > Central Asia
  • > Europe
  • > Middle East
  • > Nord America
  • > North Asia
  • > South Asia
  • > South East Asia
  • > South West Asia
  • > Sud America
  • > East Asia
  •    - China
  •    - Hong Kong
  •    - Japan
  •    - Macau
  •    - North Korea
  •    - South Korea
  •    - Taiwan

  • mediazioni e arbitrati, risoluzione alternativa delle controversie e servizi di mediazione e arbitrato


    » 06/12/2012, 00.00

    CHINA

    Corruption spreading in China, Postal Savings Bank president arrested



    The crackdown in China's banking sector continues. After the arrest of the deputy president the Agricultural Bank of China, the president of the Postal Savings Bank Tao Liming is placed under house arrest. He authorised too many unregistered loans with higher than normal interest rates. Party purges its Shandong branch, kicking out 102 members.

    Beijing (AsiaNews) - Chinese authorities have arrested Tao Liming, president of the Postal Savings Bank of China (PSBC), on suspicion of economic crimes. This is but another scandal that hits the mainland's banking system. Two weeks ago, Yang Kun, an executive vice-president of the Agricultural Bank of China (ABC) was also arrested. All this is part of a campaign undertaken by the Communist Party and the central government to eradicate widespread corruption.

    The Beijing-based PSBC is the nation's seventh-largest lender by assets. Chen Hongping, chief of an asset operation division, was arrested along with Tao. Both are said to be assisting investigations into suspected economic crimes.

    Tao was placed under shuanggui, a disciplinary system for party members outside the legal system that is the equivalent of house arrest.

    Sources said Tao and Chen were found to have issued illegal loans to clients to book unlawful gains and to have misused assets.

    The PSBC has almost 3 trillion yuan in deposits. Its main business is extending loans to small businesses in rural areas, but it lacks a complete risk-control mechanism to ensure the safety of its assets.

    Despite the crackdown, corruption in China remains endemic. Yesterday in Shandong, the Communist Party expelled 102 members for not properly registering with the party.

    Of these, 68 were found to have violated the one-child policy. Rich Chinese are known to bypass this law by paying off officials.

    Leaders in China's central government and Communist Party are conscious that scandals associated with party members are one of the main threats to domestic stability.

    After decades of abuses of power, ordinary Chinese are no longer passively putting up with local party officials. From petitions directly presented in Beijing to street demonstrations, dissatisfaction is growing and even turning violent.

    The party has launched various anti-corruption campaigns to re-establish morality in politics, but recent arrests show that they have failed so far.

    Various analysts and dissidents believe that it is "impossible" to reduce corruption as long as the government is not placed under democratic control.

     

    e-mail this to a friend Printable version










    See also

    24/02/2004 China
    Wen Jiabao criticizes failed banking reform


    07/01/2004 china
    Two state banks "saved" with 45 billon dollar loan


    09/11/2005 CHINA
    Bank fraud up in China
    Fraud is responsible for losses totalling more than a billion yuan in the first nine month of the year. Bad loans are also another important factor in bank losses. Banking reform is coming and bank managers are likely to be stripped of some of their current power.

    30/04/2007 CHINA
    Inflation: China raises bank reserve ratio to 11 per cent
    Move fails to convince everyone that inflation can be contained. Experts hope for higher interest rates. China’s banking system faces structural problems rooted in a high rate of unpaid loans.

    10/03/2006 CHINA
    Bank officials in China frequently involved in fraud and embezzlement
    Loose controls and poor governance as well as big size hinder banks from stemming fraud. Frauds in the billions are emerging.



    Editor's choices

    VATICAN
    Pope Francis tells young people that “genuine love” is not a “soap opera”, but Christians’ real identity card



    In his homily for the Jubilee of Teens, Pope Francis asked questions and gave answers to the 70,000 present. Stressing the great ideal of love as giving oneself “without being possessive”, he noted that freedom is “being able to choose the good”. He warned young people “who dare not dream,” telling them that “If you do not dream at your age, you are already ready for retirement”. He also received funds raised for the Ukraine, and appealed for the release of bishops and the priests held in Syria.


    IRAN
    Odd alliance between the US and Iranian fundamentalists

    Bernardo Cervellera

    Washington is still preventing the use of US dollars in transactions with Iranian banks, preventing business with the outside world in spite of the nuclear deal. This way, the US is helping Khamenei and the Revolutionary Guards, who want to torpedo the agreement in order to maintain their hold on power. Meanwhile, most Iranians hold down two or three jobs just to make ends meet. An unstable and bellicose Iran is a boon for arms sales. A report follows.


    AsiaNews IS ALSO A MONTHLY!

    AsiaNews monthly magazine (in Italian) is free.
     

    SUBSCRIBE NOW

    News feed

    Canale RSScanale RSS 

    Add to Google









     

    IRAN 2016 Banner

    2003 © All rights reserved - AsiaNews C.F. e P.Iva: 00889190153 - GLACOM®