Big weekend! ICBC, Minsheng Bank, etc. were notified
Illegal collection of free fees, mandatory bundling sales, high service fees and agency fees… many banks and insurance institutions were notified.
On November 21, the China Banking and Insurance Regulatory Commission website issued the”Notice on Typical Issues Concerning the Violations of Some Banking and Insurance Institutions and Lending Institutions Raising the Comprehensive Financing Cost of Small and Micro Enterprises.” The”Notice” was signed by the Supervision Office of the General Office of the State Council and the General Office of the China Banking Regulatory Commission.
Screenshot of the website of the China Banking and Insurance Regulatory Commission
Illegal collection of loan commitment fees, etc.
The”Supplementary Notice on Supporting Commercial Banks to Further Improve Financial Services for Small and Micro Enterprises” stipulates that, Except for syndicated loans, commercial banks shall not charge commitment fees and fund management fees for loans to small and micro enterprises, and strictly limit the collection of financial consulting fees and consulting fees on small and micro enterprises.
The supervision found that some branches of ICBC illegally charged small and micro enterprises with loan commitment fees, investment and financing consulting fees and other “two prohibitions and two restrictions” fees.
According to investigations, from January 2017 to October 2019, ICBC Jiangxi Branch, Hebei Branch, Henan Branch, Shanghai Branch, Jiangsu Branch, Sichuan Branch, Guangxi Branch, Liaoning Branch, Shandong Branch, etc. 9 Branches illegally charged 20 small and micro enterprises with loan commitment fees, investment and financing consulting fees and other “two prohibitions and two restrictions” fees of RMB 22,848,700.
In addition, Minsheng Bank Headquarters Group Finance Department and some branches illegally charge small and micro enterprises loan commitment fees,”Two prohibitions and two limits” fees such as bank acceptance bill exposure management fees and legal person account overdraft business commitment fees.
According to investigations, from September 2016 to November 2019, Minsheng Bank illegally charged small and micro enterprises with a fee of RMB 43,695,300 for the “two prohibitions and two restrictions”. Among them, Minsheng Bank Beijing Branch, Shanghai Branch, and Harbin Branch illegally charged loan commitment fees, involving 3 households and 4 loans, with a total amount of 13.724 million yuan;
Minsheng Bank Headquarters Group Finance Department and Minsheng Bank Fuzhou Branch, 17 branches including Suzhou Branch, Shenzhen Branch, Shijiazhuang Branch, Guangzhou Branch, Chengdu Branch, Xiamen Branch, Dalian Branch, Taiyuan Branch, Beijing Branch, Quanzhou Branch, Chongqing Branch, Jinan Branch, Changsha Branch, Wuhan Branch, Zhengzhou Branch, Qingdao Branch, etc. The branch illegally collected bank acceptance bill exposure management fees, involving 180 households and 1975 transactions, totaling 29,053.5 million yuan;
Minsheng Bank Headquarters Group Finance Department and Minsheng Bank Shanghai Branch, Hangzhou Branch, Nanchang Branch, Quanzhou Five branches, including the branch and Zhengzhou branch, charged legal person account overdraft business commitment fees in violation of regulations, involving 8 accounts and 10 transactions, with a total amount of 917 million yuan.
Compulsory bundling sales
The supervision found that Minsheng Bank sold high-rate personal accident insurance to customers on the premise that it had a mortgage, and withdrew high agency fees.
According to the investigation, from September 2016 to November 2019, Minsheng Bank had a total of 101,900 personal business loans for small and micro enterprises (guarantee method is mortgage). In injury insurance, 67%of borrowers’ accident insurance premium amount/loan amount is not less than 0.40%. The bank and the vast majority of insurance companies have passed a general-to-management cooperation agreement, stipulating that the agency fee rate is 50%-80%of the premium.
For example, from September 2016 to November 2019, customers of 2684 individual industrial and commercial households and small and micro business owners of Hangzhou Branch of Minsheng Bank purchased Borrower Accident Insurance of Everbright Sun Life Insurance Company. The client paid a premium of RMB 18.4724 million to Everbright Sun Life Insurance Company, and Sun Life Everbright Life Insurance Company paid an agency fee of RMB 14.7779 million to the Hangzhou Branch of Minsheng Bank. The agency fee accounted for 80.02%of the premium. A random inspection of some insurance policies shows that the relevant insurance premium rate is 0.39%-0.5%, which is several times that of general personal accident insurance.
In addition, Ping An Insurance (Group) subsidiary Ping An Puhui cooperated with the Industrial Bank to issue inclusive loans for small and micro businesses, compulsory bundled sales of insurance, and high service fees, which pushed up comprehensive financing costs.
According to investigations, Ping An Puhui Financing Guarantee Co., Ltd., a subsidiary of Ping An Insurance (Group) Co., Ltd. of China, when cooperating with Industrial Bank to carry out inclusive loan business, forced the sale of Ping An Property and Casualty Insurance Company of China. Loan guarantee insurance does not provide other credit enhancement methods or other insurance company products for customers to choose, which infringes consumers’ right to choose and fair transactions.
Industrial Bank relies on third-party cooperation channels to obtain customers, ignoring the assessment of the partners’ fees and comprehensive financing costs. Industrial Bank provides all loan funds with an annual interest rate of 6.32%-7.6%; Ping An Property Insurance Co., Ltd. of China assumes the performance guarantee responsibility for 99%of the loan amount, with a nominal monthly premium rate of 0.12%; Ping An Puhui Finance Guarantee Co., Ltd. is responsible Customer acquisition and collection of non-performing loans, as well as joint guarantees that assume 1%of the loan amount, the nominal monthly guarantee rate is 0.33%, and the nominal monthly service fee rate is 0.09%-0.65%.
For example, a customer’s loan principal in May 2019 was 3.82 million yuan, with a term of 3 years, and the loan interest rate was 7.6%. The bank would adopt a method of equal principal and interest repayment. Industrial Bank is expected to collect loan interest of 464 thousand yuan. Ping An Property Insurance Co., Ltd. is expected to collect insurance premiums of 163,400 yuan, and Ping An Puhui Financing Guarantee Co., Ltd. is expected to collect guarantee fees of 4,538 yuan and service fees of 811,400 yuan. The annualized comprehensive financing cost is 22.16%. Among them, Ping An Puhui Finance Guarantee Co., Ltd. charges 56.53%of the comprehensive financing costs.
Take a lesson and learn from one another.
For those ignoring the prohibition and breaking the rules against the wind, the financial regulatory authorities will find and deal with them together, and will never tolerate them.
Currently, the China Banking and Insurance Regulatory Commission is working with relevant parties to deal with the problems found in the supervision and inspection in accordance with laws and regulations. The Supervision Office of the General Office of the State Council will closely follow the progress of related work and urge the rectification of problems in place.
column editor:Zhang Wu text editor:Room Ying thematic map Source:China Visual Image Editor:Shao Jing
Source:Author:CCTV public micro-channel number