Analysis Of The Case Of The Chengdu Branch Of Pudong Development Bank Covering Up The Bad Loans

In recent years,the CBRC has increased the penalties for commercial banks to violate the rules,only in 2018,the banking and supervision system issued a fine of 4188 sheets,the amount of the penalty accumulated more than 2 billion yuan.Commercial banks due to credit business violations accounted for more than 40% of the proportion,the most notable of which is the Pudong bank Chengdu branch in order to cover up bad loans to carry out illegal operations,and thus was fined 462 million yuan cases.Shanghai Pudong Development Bank is a bank specializing in the field of public business,in the country’s 12 joint-stock commercial banks,the most rapid development,but in the background of strong bank supervision,deleveraging,the PBOC’s past savage growth era has passed,the increase in bad loans,difficult to deal with,Chengdu Branch counterfeiting incident began to reveal.The PBOC’s case is not an example,many banks have similar problems,so it is particularly urgent to study the Pudong Bank’s Chengdu branch to cover up the bad loan cases and find out the reasons for its illegal operation,so as to put an end to the occurrence of such incidents.Based on the goal of risk management of commercial banks,this paper analyzes the cases of hidden loans in Chengdu branch of Pudong Bank,and holds that the main reasons for the concealment of bad loans in Chengdu branch of Pudong Bank are the existence of short board in retail business,the one-sided pursuit of business performance,the weak awareness of compliance,and the omission of post-loan management.Behind these reasons is the lack of risk management and internal control of the branch by the head office of the PBOC,including the imperfect risk management system,the loopholes in the credit approval system,the unsound performance appraisal system and the problem that the head office has neglected to control the branch management in four aspects,According to these problems,this paper puts forward some countermeasures and suggestions: perfecting the Operation risk management system,strengthening the loan information disclosure,preventing moral hazard,re-dividing the credit examination and approval,refining the Trust service guidance,strengthening the post-loan management restraint,perfecting the branch organization performance appraisal mechanism,strengthening the supervision and training of the branch management,etc.