Third Bank Under Scrutiny: Jinan Rural Employee Publicly Accuses Bank Officers of Fraud

First it was Baoshang Bank being taken over. Then the PBoC stepped in to support Bank of Jinzhou in the interbank market. Now a third bank, Jinan Rural Commercial Bank, is drawing attention after rumors spread through WeChat. The key fact about this story is the bank employee used their real name, this is not an anonymous accusation. Moreover, the employee claims bank officers have been funding the mistresses and promiscuous lifestyle with bank funds.

iFeng: 济南农商行员工实名举报厅级干部：我啥都不怕了
Sogou: Jinan Agricultural Commercial Bank Staff Report Departmental Cadres with Real Names: I'm not afraid of anything

In addition, Bloomberg also reported that in 2013, a colleague from the former work unit gave birth to a child and invited me to accompany him to the hospital. I didn't accompany him because I was busy at work, and my nightmare started from then on. Later, I learned from the colleague that her child was Wang Zhongtan, the current director of Qingdao Banking Regulatory Bureau and then deputy director of the provincial banking regulatory bureau. The colleague got a quick promotion. Ding Haosheng, then deputy director of the Shandong Provincial Association in charge of personnel, also had this kind of male-female relationship in the system.

This story is already going viral.

iFeng: 济南农商行员工举报事件谜团：干部作风、员工管理、经济案
Sogou: The Mystery of Staff Report in Jinan Agricultural Commercial Bank: Cadre Style, Staff Management, Economic Case

A real-name reporting article from internal employees pushed Jinan Agricultural Commercial Bank to the forefront.

On June 8, Peng Bo, former deputy supervisor of Jinan Agricultural Commercial Bank, released an online article entitled "Real-name Report of Shandong Provincial Cadres' Misdemeanour and Loss of Bank Assets of Nearly 3 Billion Yuan" through his personal WeChat public number, pointing to many chaos in Jinan Agricultural Commercial Bank. On June 9, Jinan Agricultural and Commercial Bank's official WeChat released a message in response, saying, "Since May 24, Peng Bo has successively released information through individual websites and personal WeChat public numbers to fabricate facts and defame and maliciously slander relevant personnel."

Then, the two sides entered the second round from a distance. At noon on June 9, Peng Bo wrote again that "Jinan Agricultural Commercial Bank did not respond positively to all the problems I reported, including concealing 3 billion major cases, including the rapid promotion of leading mistresses ..." In an interview with the media on June 10, Ma Lijun, chairman of Jinan Agricultural Commercial Bank, commented on Peng Bo, saying, "By complaining, insulting and threatening, she tasted the benefits through this means. She wrote a" guarantee letter "in 2015."

On the evening of June 10, Peng Bo told surging news (www.thepaper.cn), "Ding Moumou (then deputy director of Shandong Rural Credit Union) took Ma Lijun and others with him, threatening to let me go to work, and asked me to write a guarantee that they would not talk about their problems in the future. If you don't write, you won't arrange your work. I didn't want to disturb them because I was exhausted physically and mentally. In order to get to work smoothly, I wrote a guarantee ". Later, surging news verified Peng Bo's statement to Ma Lijun, but as of press release, no response has been received.

At the same time of mutual resentment, whether the report on cadres' work style is true, whether Peng Bo's post adjustment is in compliance, and the progress of cases reported to the CBRC for more than two years ... too many mysteries remain unanswered, yet to be revealed by the official authorities.

iFeng has a special report section on this story, there are currently 12 stories.

In related news, a bank in Guizhou planning an IPO in Hong Kong discussed interbank risk in light of Baoshang Bank in its regulatory filings: 贵州银行提交港股IPO申请 提示包商银行同业存款风险

In addition to the general information disclosure, since the time of issuing the prospectus coincided with the serious credit risk of Baoshang Bank being taken over, Guizhou Bank disclosed the risks of the relevant business of Baoshang Bank in the prospectus.

The prospectus specifically reminds that as of March 31, 2019, the interbank deposits of Guizhou Bank in China Merchants Bank were 1.45 billion yuan, due to the significant increase in the expected credit risk of this interbank deposit. Therefore, the Bank of Guizhou decided to confirm the impairment loss of RMB 174 million on the amount of the profit and loss and other comprehensive income in the three months ended March 31.

This adjustment led to a significant increase in the provision for impairment losses of the Bank of China and other financial institutions in the first quarter of this year from RMB 600,000 in the same period in 2018 to RMB 174.6 million. Guizhou Bank also made a risk warning saying, “We cannot guarantee that other Chinese commercial banks that deposit interbank deposits will not have significant risks such as credit deterioration.”

Prior coverage

PBoC Steps in to Support Bank of Jinzhou
Baoshang Bank a Symptom of Widespread Corporate Looting
PBoC Blames Tomorrow Group for Isolated Risk of a Bank Crisis
China Banking: More Troubled Banks in Focus, PBoC Sets Up Deposit Insurance Company <--- this post has links to background on Bank of Jinzhou, it is not a surprise that this bank is in trouble