Case Study Of Shanghai Pudong Development Bank Chengdu Branch Covering Up Non-performing Loans With Empty Shell Credit

In recent years,the downward pressure on China’s economy has increased,the profitability of enterprises has generally declined,and the ability to repay loans has been weakened.While commercial Banks increase the credit supply,the total amount of non-performing loans and the non-performing ratio have also increased year by year.Although commercial Banks are struggling to clear the non-performing loans,the results of reducing the non-performing loan ratio and reducing the non-performing loan quota are hardly satisfactory.Bank risk cases are frequent,and regulators often issue heavy fines.In 2018 alone,the bank insurance supervision system issued 4,188 fines,with the total amount of fines exceeding 2 billion yuan.In Shanghai pudong development bank chengdu branch involved billions of non-performing loans and smoke exposure after nine months,the China banking regulatory commission issued the first ticket in 2018,the CBRC thorough check,Shanghai pudong development bank chengdu branch to cover up the bad loans,violate compasses to handle credit,trade,finance,credit and factoring business,enterprise credit 77.5 billion yuan to 1493 empty shell,sichuan branch of Shanghai pudong development bank chengdu branch in accordance with the fine of $462 million,Shanghai pudong development bank internal accountability of nearly 200 people.Shanghai pudong development bank is an expertise in the field of approaches to business bank,in 12 share-holding commercial Banks in the country,the most rapid development,but in the bank supervision,under the background of deleveraging,the growth of the Shanghai pudong development bank in the past barbaric age has in the past,the non-performing loans increased,difficult to handle,chengdu branch fraud incident surfaced.The case of SPD bank is not alone.Many Banks have similar problems.Therefore,it is particularly urgent to study the case of covering up the non-performing loan of chengdu branch of SPD bank and find out the reasons for its illegal operation,so as to put an end to such incidents.This paper takes the case of covering up the non-performing loan with shell credit in chengdu branch of Shanghai pudong development bank as an example to make a detailed introduction to the case and clarify the context of the case of illegal loan in chengdu branch.It includes the basic situation of chengdu branch of Shanghai pudong development bank,the social background of the case and the background of the characters,the whole case history and the final result of handling,etc.Through the analysis,we found some loopholes in risk management and internal control mechanism of SPD bank chengdu branch,including weak awareness of compliance management,imperfect performance assessment mechanism,loopholes in credit approval system,inadequate head office management of branch,and imperfect information system construction.And from the aspects of strengthening compliance management awareness,improving the performance appraisal system,improving the credit approval system,strengthening the head office of the branch management control and improving the construction of information system,put forward some practical Suggestions,but also bring some warnings and reference for other Banks.Only by having a sound risk management system and internal control mechanism can commercial Banks better resist all kinds of risks and achieve long-term and steady development.