The Industrial and Commercial Bank of China (ICBC), China Construction Bank (CCB), and China CITIC Bank respectively announced on June 22 that they have taken practical and effective measures to rectify operating violations, the China Securities Journal reported.

According to an audit report released by the National Audit Office, some branches of the three banks have breached rules in the course of their operations. In response to such criticism, the three stated that they are checking their current managing systems, regulating business operations, and strengthening employee awareness of performing in accordance with rules, all with the aim of reinforcing risk-management capacity and improving management performance.

ICBC and China CITIC Bank declared that they have carried out comprehensive measures to rectify all the violations. The latter emphasized that all loans that had been embezzled or irregularly lent have been withdrawn; unified financial action has been taken to tackle irregular settling of accounts; notes issued irregularly have been suspended; and more effort will be exerted to check the authenticity of the trade background of notes business.

CCB reiterated that most of its problems have been addressed properly; the vast majority of the loans involved have been retracted, and the remaining ones will be called back in the near future.

Additionally, the three joint-stock commercial banks pledged that the problems that have been uncovered will have little impact on their operating performance.

For more information, please consult the coverage in Chinese at:

http://www.chinasecurities.com.cn/yh/02/200906/t20090623_2123726.htm

(China.org.cn by Fan Junmei June 23, 2009)