Finance chiefs moved Thursday to quash fears over the accounting practices of the Everbright Bank of China after a series of media reports that a former chairman has been kicked out of the Communist Party for fraud.
The Ministry of Finance said the accounting system of the bank was "basically in line with the requirements of the regulating departments."
The ministry, which regularly checks accounting systems of big enterprises, said some problems had been discovered at Everbright, which is the sixth biggest commercial bank in China.
But many of them, including recapitalization and the payment of tax arrears, have been solved and the rest were being addressed, it said.
"The bank's business has been growing rapidly, non-performing loans are in decline and its overall situation is showing obvious improvements," the ministry said.
Xinhua News Agency Thursday said Zhu Xiaohua, former chairman of both the bank and its parent, the China Everbright Group, has been officially fired and expelled from the Communist Party of China for financial crimes such as taking kickbacks.
Zhu was removed from his post as head of the bank and Everbright Group in 1999 and has been under investigation ever since.
In an interview with China Daily earlier this month, bank Executive Vice-President Shan Jianbao said the bank attaches great significance to the improvement of corporate governance. It has pushed back its much-heralded listing plan to cement the quality of its assets before going public.
"Previously, we had mapped out a three-year listing timetable, but we found we have much important work to do rather than jump into a rash listing," Shan said. "We think life will be easier if the bank builds up a solid and sound performance before its listing."
(China Daily August 16, 2002)
