Caixin
Jul 21, 2021 07:02 PM
FINANCE

Provincial Banking Regulator Fired Over Bribery Allegations

Yang Qinghe
Yang Qinghe

Yang Qinghe, a former official at the China Banking and Insurance Regulatory Commission’s (CBIRC) Shanxi provincial branch, had been expelled from the Communist Party and removed from public office for alleged corruption, graft-busters said Tuesday.

Yang, 59, is accused of abusing his power to help people who bribed him in relation to loan issuance and uniform customization, the Central Commission for Discipline Inspection and its local counterpart in Shanxi province said in a statement (link in Chinese). He is also accused of illegally taking a “particularly large” number of bribes, the anti-corruption agencies said.

Yang’s suspected crime sheet will be sent to the procurator for further investigation pending trial, the agencies said.

Yang first fell under investigation (link in Chinese) in January this year. He began serving as a second-level inspector of the CBIRC’s Shanxi provincial branch in April 2020, having worked in China’s financial regulation system for more than three decades. In 2009, he joined the Shanxi branch of the now-defunct China Banking Regulatory Commission (CBRC) as a deputy director, which was merged with the country’s insurance regulator to form the CBIRC in 2018. Before that, he served as head of the CBRC’s local branch in the city of Datong and as the president of local branches of China’s central bank in Datong and Shuozhou cities, both in Shanxi.

Yang was in charge of supervising major state-owned commercial banks at the CBIRC’s Shanxi branch, the regulator’s website showed. Sources familiar with the matter told Caixin that Yang had also been involved in management of the province’s scandal-plagued Shanxi Rural Credit Union, an agency that functions as a central operator of rural commercial banks.

A string of financial officials in Shanxi have been subjected to probes since last year amid a major crackdown on the province’s scandal-plagued rural banking sector. Tens of billions of yuan were lost to Shanxi Rural Credit Union due to embezzlement and other illegal activities, people familiar with the matter previously told Caixin.

Jing Hui, a former head of Shanxi’s provincial financial supervision administration, and Zhang Anshun, a former head of the CBIRC’s Shanxi branch, were put under investigation in July last year. The following month, Wang Zaisheng, a former deputy chief of Shanxi Rural Credit Union’s party committee, also fell under investigation.

In January, Zhang was expelled from the Communist Party for alleged bribery and abuse of power.

Contact reporter Tang Ziyi (ziyitang@caixin.com) and editor Heather Mowbray (heathermowbray@caixin.com)

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