The China Banking Regulatory Commission (CBRC) on Tuesday told the Big Four state-owned commercial lenders to get tougher on irregularities and crimes.

The call for stronger internal controls and risk management came after a spate of media reports exposing corruption at some of the banks.

CBRC Vice Chairman Che Yingxin said at a recently concluded conference that some branches of the Big Four had sacrificed discipline and internal management at the altar of greater market share and fatter profits.

This year, the CBRC will investigate the lending policies of the banks, especially pertaining to loans for consumers, real estate and fixed asset investment projects.

It will also look into the nonperforming loans of the Big Four and their risk management schemes.

Tang Shuangning, also a CBRC vice chairman, said that the commission will insist on full and factual disclosure of NPL ratios and profits.

Meanwhile, the Bank of China and China Construction Bank, the first two of the Big Four to head toward public listing, have been asked to accelerate the building of their corporate governance mechanisms.

The Industrial and Commercial Bank of China and the Agricultural Bank of China are also to speed up their internal reforms.

All four banks are required enhance capital adequacy and asset quality as well as risk management for all of their products and services provided at home and abroad.

(China Daily March 23, 2005)