Bank of China auto fraud won't hurt its financials

An auto loan fraud which happened at Bank of China's Shenyang branch five years ago won't affect its financial performance, local media reported, citing spokesman Wang Zhaowen.

Bank of China has retrieved 120 million yuan ($15.6 million) of loans defrauded by a car trading company through auto financing, the report said. Managers of the trading firm have been arrested.

China's biggest state-owned lenders are attempting to raise the standards of risk-management systems and eradicate fraud after scandals and embezzlement cases.

Several senior bank executives including Liu Jinbao, former chief executive of Bank of China's Hong Kong operations, and Wang Xuebing, who headed Construction Bank, are among those found guilty and sentenced to prison on corruption charges in recent years.

This is an extract from
Asian Banking and
Finance Magazine.

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