Forty Chinese banks found in violation of interbank rules

Forty Chinese banks found in violation of interbank rules

A Chinese national flag flies in front of the China Construction Bank (CCB) Tower at Hong Kong's Central business district Dec 26, 2014. (Reuters file photo)
A Chinese national flag flies in front of the China Construction Bank (CCB) Tower at Hong Kong's Central business district Dec 26, 2014. (Reuters file photo)

BEIJING - China's central bank has found 40 banks in violation of interbank account regulations and have ordered them to rectify the problem within three to six months, financial magazine Caixin reported on Tuesday, citing a document.

Large state-owned lenders, including China Construction Bank, Bank of China (BOC), Agricultural Bank of China, China Minsheng Banking Corp, China Merchants Bank , and Ping An Bank were told to conduct an overhaul due to breaching the rules, Caixin reported.

The central bank also found Hengfeng Bank, Bank of Nanjing and BOC's Shanghai branch had severely violated regulations, the report said.

Caixin did not provide further details on the irregularities.

During the three- to six-month period in which the banks are to rectify the problem, they will not be allowed to conduct interbank account businesses, the magazine said.

The PBOC started to check banks' interbank accounts in September last year, Caixin said.

The PBOC did not immediately respond to a request seeking comment. Bank of Nanjing could not be immediately reached for comment. Hengfeng Bank and BOC did not immediately respond to requests seeking comment.

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