China's largest bank, Industrial and Commercial Bank of China
(ICBC), lost more than 1 billion yuan (US$121 million) in loans
made to a privately-owned firm in Guangdong's Nanhai city, the
latest report from the China National Audit Office (CNAO) revealed
yesterday.
Tian Ruizhang, ICBC's vice president, told Reuters that the bank
investigated the loans in March.
According to CNAO's report, the private firm owned by a Mr Ma
obtained loans worth 7.4 billion yuan (US$894 million) from ICBC's
Nanhai branch by providing false financial information in a
conspiracy with the bank's staff.
CNAO estimated ICBC had already lost more than 1 billion yuan
from those loans. ICBC was also involved in about 30 cases of
irregular loans worth 6.9 billion yuan, the report said.
Some Chinese bankers expect Beijing to inject US$100 billion
into ICBC and the Agricultural Bank of China to help them
recapitalize, paving the way for their listing.
(China Daily June 25, 2004)