What’s new: China Everbright Bank infringed consumers’ interests and breached industry rules in businesses related to wealth management and loans, the industry’s top regulator said.
The China Banking and Insurance Regulatory Commission ordered Everbright Bank to correct misconduct in its sales and marketing of wealth management products and personal loans, the commission said Wednesday in a statement.
The bank was criticized for procedural flaws in handling clients’ wealth management investments, bundling loan issuance with other products, overcharging on fees and failing to properly assess clients’ risk tolerance, among other things.
What’s the context: Everbright Bank is the latest financial institution to come onto regulators’ radar as authorities step up scrutiny of business compliance and consumer protection in the financial sector.
In January, PICC Property and Casualty Co. Ltd. was criticized by the regulator for breaches in its insurance contracts that allegedly harmed the interests of policyholders.
Contact reporter Han Wei (weihan@caixin.com) and editor Bob Simison (bobsimison@caixin.com).
