Banking | Regulator said to warn bank chiefs’ jobs at risk if targets missed

China has warned the nation’s top banking executives that they could lose their jobs if they fail to keep risks under control, according to people familiar with the situation.
Shang Fulin, chairman of the China Banking Regulatory Commission, told an internal meeting last month that banks would be forced to restructure, inject new capital or change their senior management if key risk indicators fall outside “reasonable ranges,” the people said, requesting anonymity because the contents of the speech weren’t made public.
The indicators include bad loan coverage and capital adequacy ratios, Shang told the meeting, the people said. The CBRC had no immediate comment.
The warning by China’s top banking regulator follows concerns about rising bad loan levels among the nation’s lenders, and recent fraud cases which have shaken investor confidence.
An alleged fraud of almost 1 billion yuan (USD152 million) was discovered late last year at China Citic Bank Corp., where an employee colluded to fake documentation that companies typically use to get quick funds, other people familiar with the matter said last week. Agricultural Bank of China Ltd. last month announced a 3.9 billion yuan “risk incident” that local media reported was tied to a bills-financing fraud by employees. Bloomberg