A counter for deposit and insurance at a bank in Zhengzhou, Central China's Henan Province File photo: VCG

Amid China's intensifying anti-corruption push in the financial sector, a total of eight senior executives from large state-owned banks were put under investigation in March alone, according to media reports.

The list includes Liu Liange, former chairman of Bank of China (BOC); Wang Jianhong, former head of BOC's Beijing branch; Zhao Zhiran, an executive of China Construction Bank's Shenzhen branch, South China's Guangdong Province, and others.

The Central Commission for Discipline Inspection (CCDI) of the Communist Party of China and the National Supervisory Commission over the weekend announced that Liu was investigated for suspected serious violations of law.

Liu was the first former head of a centrally administered financial firm to have been put under probe since the 20th CPC National Congress held in October 2022, news site Chinanews.com reported. Since the 18th CPC National Congress in 2012, China has made continuous efforts to fight corruption with growing resolve, Chinese experts said.

The CCDI in January highlighted anti-corruption work in key sectors with high concentrations of power, funds and resources, such as finance, state-owned enterprises, and law enforcement departments, as well as the nation's grain purchasing and marketing system, according to the Xinhua News Agency.

The anti-graft campaign in the financial sector in March is in fact a continuation of the government's sustained efforts to build up clean governance and administration, Dong Shaopeng, a senior research fellow at the Chongyang Institute for Financial Studies at Renmin University of China, told the Global Times on Sunday.

Corrupted executives at the state-owned banks and other financial units use public financial resources to seek their own private gains, which damages the interests of the public and generates financial risks, Dong noted.

Against the backdrop of the latest wave of banking system crisis in the US and Europe, it is crucial for China to enhance the stability of the country's financial system and eliminate the hidden risks, experts said.

The majority of Chinese lenders have released their 2022 financial results, including major state-owned banks. Six major state-owned lenders reported combined revenue of 3.69 trillion yuan ($537.5 billion), the Shanghai Securities News reported, with a stellar annual growth in operational revenues and net profits.

Most of Chinese banks have also witnessed steady declines of their non-performing loan ratios last year, with their ability to control risks being enhanced, experts said. 

China's overall banking and financial system remains sound and healthy. Nevertheless, the US' and the West's banking system woes have sounded an alarm, and domestic financial institutions should be more prudent to maintain their capital adequacy and curb financial risks, Dong said.

Global Times