What’s new: A senior official at China’s top banking regulator has fallen under an investigation by a local anti-graft body in the Inner Mongolia autonomous region, according to an official statement (link in Chinese) released Tuesday.
Cai Jiangting, 57, was appointed an inspector at the Law and Regulation Department of the China Banking and Insurance Regulatory Commission (CBIRC) in 2018, the statement showed. The department is responsible for drafting laws and rules for the banking and insurance industries, and proposing punishments for financial institutions’ wrongdoings.
Between 2003 and 2014, Cai served in different roles in a banking supervision department of the CBIRC’s predecessor. It was during this period that many of China’s city commercial banks, including Inner Mongolia-based Baoshang Bank Co. Ltd., underwent a wild growth spurt helped along by loose supervision that they enjoyed by bribing regulators.
Sources with knowledge of the matter told Caixin that the investigation into Cai could be linked to her possible misconduct during her time in the supervision department.
The background: Cai is one of the latest banking officials to fall under investigation as China’s graft busters have stepped up oversight of the country’s financial system.
Li Guorong, who is also being investigated by an Inner Mongolia anti-corruption agency, was accused of taking bribes after he was appointed as a senior executive overseeing the state takeover of Baoshang Bank.
Related: Five Things to Know About China’s First Bank Failure in Decades
Contact reporter Tang Ziyi (ziyitang@caixin.com) and editor Michael Bellart (michaelbellart@caixin.com)
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