China's banking watchdog yesterday told the "Big Four" State-owned commercial lenders to be tougher on irregularities and crimes.

The China Banking Regulatory Commission's call for beefed up internal controls and risk management came after a spate of media reports exposing corruption at some of the banks.

Che Yingxin, assistant chairman of the commission, warned at its recently concluded conference that some branches of the "Big Four" had sacrificed discipline and internal management in pursuit of greater market shares and fatter profits.

This year, the commission will probe the lending policy of the banks, especially towards consumers, real estate and fixed asset investment projects.

It will also check on the non-performing loans (NPL) of the "Big Four" and their risk management schemes.

Commission Vice-Chairman Tang Shuangning insisted that the banks must tell the truth when it comes to their NPL ratios and profits.

Meanwhile, Bank of China and China Construction Bank, the first two of the "Big Four" to head towards 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 accelerate their internal reforms.

All four banks should enhance their 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)