Caixin
Dec 16, 2020 08:00 PM
FINANCE

Ex-Banking Official Accused at Trial of Taking Record Amount of Bribes

What’s new: Song Jianji, a former deputy head of the now-defunct China Banking Regulatory Commission’s (CBRC) Inner Mongolian branch, stood trial Tuesday in the autonomous region’s capital Hohhot, according to a statement (link in Chinese) issued by a local court.

Song is accused of taking bribes in exchange for help worth more than 229 million yuan ($35 million) between 1995 and 2017 when he worked at the regional branches of the central bank and the CBRC. A record sum for a corruption case in the banking regulatory system, as far as is publicly known, bribes were offered for assistance including loan extensions, loan interest reductions and administrative approvals, said the statement. Song had “no disagreement” with the prosecutor’s charges, the court said.

What’s the background: Song is one of several former officials of the banking regulator’s regional branch who have fallen under graft investigations, including the former head of the CBRC’s Inner Mongolia branch Xue Jining, as Caixin previously reported. The CBRC merged with the country’s insurance regulator to become the China Banking and Insurance Regulatory Commission in 2018.

Some cases were linked to corruption in failed Baoshang Bank Co. Ltd., a local bank mired in debt and scandals which has since entered bankruptcy proceedings. The lender was previously controlled by secretive tycoon Xiao Jianhua who came under investigation by Chinese authorities in January 2017.

Several of the then top executives at the regional lender have been detained by authorities as part of an investigation into the shocking scandals at the bank.

Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full story in Chinese, click here.

Related: Baoshang Bank Scandal Takes Down Yet Another Official

Contact reporter Guo Yingzhe (yingzheguo@caixin.com) and editor Heather Mowbray (heathermowbray@caixin.com)

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