On July 9, Bank of Jiangsu issued the "Announcement on the Resignation of Senior Management Staff". The announcement stated that the board of directors had recently received a written resignation report from Mr. Zhou Kai. Due to work adjustments, Zhou Kai no longer serves as the

reporter Xie Changguo intern reporter Wang Xinyu reported

html On July 9, Bank of Jiangsu released the "Announcement on the Resignation of Senior Management Staff". The announcement stated that the board of directors had recently received a written resignation report from Mr. Zhou Kai. Due to work adjustments, Zhou Kai no longer serves as the vice president of the bank.

Recently, there have been frequent troubles with senior executives of Bank of Jiangsu. On June 1, the Zhejiang Supervision Bureau of the China Banking and Insurance Regulatory Commission issued a fine to Bank of Jiangsu Hangzhou Branch. The content of the fine pointed out that the bank's executive Guan Youjian failed to perform his duties well and was not prudent in credit management. The Bank of Jiangsu Hangzhou Branch was fined 2.35 million yuan, and Guan Youjian was given a warning and a fine of 50,000 yuan.

In addition, a case previously disclosed by Judgment Documents Network about the former party committee member and vice president of Jiangsu Bank Suzhou Branch being suspected of corruption and bribery also exposed the bank's problems in executive management. Since the beginning of this year, the bank’s Hangzhou Branch, Suzhou Branch, Shenzhen Branch, and Xuzhou Branch have received fines from regulatory authorities one after another due to business non-compliance issues. The cumulative fines for institutions and individuals have reached 4.05 million yuan.

reporters called the bank's office regarding the bank's vice president's resignation and previous fines, but no one answered the many calls to the office phone number provided by the customer service staff.

Vice President Resigns and Additional Personnel Changes

html On July 9, the Board of Directors of Bank of Jiangsu announced that it had received Mr. Zhou Kai’s resignation report. Due to work adjustments, Zhou Kai will no longer serve as the vice president of the bank. After the only deputy president born in the 1970s resigned, all the vice presidents of the bank will be veterans born in the 1960s.

According to reports, Zhou Kai, a member of the Communist Party of China, is a senior economist, graduated from Nanjing Agricultural University majoring in rural finance, and received a doctorate in management. Previously, he was a clerk, business deputy manager, and risk manager (professional technical level five) of the Jiangsu Branch of the China Construction Bank. He later served as the deputy general manager, deputy general manager (in charge of work), and general manager of the risk management department of the Bank of Nanjing. He then served as the general manager of the risk management department of the Bank of Jiangsu, assistant to the president of the Bank of Jiangsu, and a member of the party committee. In April 2019, he was appointed as the vice president of the Bank of Jiangsu (in April 2020, he served as deputy mayor of Zhenjiang and a member of the municipal party committee). Relying on his previous work experience, Zhou Kai has been rising rapidly in Jiangsu Bank.

The 2020 financial report shows that there were many changes in the bank’s independent directors, external supervisors, and employee supervisors last year due to tenure and work reasons. During the reporting period, the number of retired employees of the bank's parent company and major subsidiaries who were required to bear expenses was 2,649, accounting for 17.24% of the number of active employees. In addition, on June 21, the Jiangsu Supervision Bureau of the China Banking and Insurance Regulatory Commission approved the qualifications of Luo Feng and Zhou Aiguo as business directors of Jiangsu Bank. On June 15, the qualifications of Ke Zhenlin, President of Nanjing Branch of Bank of Jiangsu, and Qi Hao, Deputy General Manager of the Business Department of Bank of Jiangsu Head Office were approved.

reporters noticed that the bank has recently had prominent problems with its senior managers. The corruption and bribery of the vice president of the Suzhou Branch of the Bank of Jiangsu was recently exposed, sparking heated discussions.

html On May 31, the Judgment Documents Network disclosed the criminal ruling of Shan, a former member of the Party Committee and Vice President of the Suzhou Branch of the Bank of Jiangsu, suspected of corruption and bribery. The ruling disclosed that Shan took advantage of his position when he was a member of the Party Committee and Vice President of the Suzhou Branch of the Bank of Jiangsu from 2016 to 2017 to embezzle and sell Sinopec gas recharge cards worth more than 400,000 yuan, and took the proceeds for himself. This move was suspected of corruption.

Earlier, from January and February 2002 to December 2018, Shan served as the deputy president and president of the Hongqiao Branch of Nantong Commercial Bank, and the party committee member and deputy president of the Suzhou Branch of the Bank of Jiangsu. He took advantage of his position to seek benefits for relevant units and individuals when handling business, and repeatedly collected other people's finances, which was equivalent to a total of more than 2.83 million yuan in RMB. After the second-instance court made a final ruling, the facts of Shan's crime of corruption and bribery were clearly established, the appeal was dismissed, and the original verdict was upheld. In the end, Shan, the vice president of the Suzhou Branch of the Bank of Jiangsu, was sentenced to nine years in prison and fined RMB 700,000.

Insufficient performance of duties by senior executives and inadequate credit management. The bank's internal controls have been frequently criticized.

In addition to the corruption and bribery of the vice president of the Suzhou branch, five branches of the bank were also fined by regulatory authorities this year due to problems such as inadequate management of executive duties, imprudent credit management, and the misappropriation of credit funds..

html On June 1, according to the administrative penalty information issued by the Zhejiang Supervision Bureau of the China Banking and Insurance Regulatory Commission, the Hangzhou Branch of the Bank of Jiangsu was not in place due to inadequate management of executive duties. The proposed executives had actually performed their duties without qualification approval; credit management was imprudent, and loan interest income was decomposed through interest rate swap derivatives business; credit management was imprudent, requiring credit customers to "deposit" "Return"; loans are issued to real estate development projects with insufficient capital ratios and incomplete four certificates; real estate development loan funds are actually used to pay for land; inadequate management of loan purposes leads to the misappropriation of personal loan funds; inadequate loan management leads to the misappropriation of current loan funds ; The Zhejiang Supervision Bureau imposed administrative penalties on eight violations of laws and regulations including imprudent lending management, including a fine of 2.35 million yuan on the Hangzhou Branch of Bank of Jiangsu. Guan Youjian was given a warning and fined 50,000 yuan because he was primarily responsible for the above-mentioned imprudent credit management behaviors.

html On March 4, the Shenzhen Branch of the Bank of Jiangsu was fined 300,000 yuan by the Shenzhen Supervision Bureau for the untrue transfer of non-performing assets ; on January 7, Wu Zhiqin, an employee of the Suzhou Branch of the Bank of Jiangsu, was banned for life for being directly responsible for the bank's illegal management of marketing item expenses. He is engaged in the banking industry; on January 6, the Xuzhou Branch of the Bank of Jiangsu was fined by the Xuzhou Banking and Insurance Regulatory Bureau because credit funds were misappropriated for other purposes and the pre-loan investigation was not done properly; credit funds or bill discount funds were used as deposits and the loan was inflated. RMB 1.3 million; on January 5, the Changzhou Branch of the Bank of Jiangsu violated the relevant management provisions of the Insurance Law by violating the relevant management regulations of the Insurance Law when it used insurance reminders when acting as insurance agents and was fined RMB 50,000.

It can be seen from the above fine details that the bank has various problems in internal control management and business compliance. Among them, loan management and employee management problems have become the hardest hit areas for punishment by regulatory authorities. It is also worth mentioning that the bank has been involved in multiple credit card disputes and financial loan contract disputes this year, and the risk control issues highlighted by this are worth pondering.

html On June 8, the China Banking and Insurance Regulatory Commission issued the "Notice on Carrying out the "Internal Control and Compliance Management Construction Year" Activities in the Banking and Insurance Industry. The "Notice" proposed to highlight top-level compliance and strengthen corporate governance. We must perform our duties diligently, highlight the key few, pay close attention to the education and management of key personnel in important positions, require senior managers of financial institutions to take the lead in compliance, set an example, continue to improve the level of internal control and compliance management, and require regulatory authorities at all levels to hold institutions accountable for repeated violations in accordance with the law. In addition, the "Regulations on the Administration of Qualifications of Directors, Supervisors and Senior Managers of Insurance Companies" were reviewed and approved by the China Banking and Insurance Regulatory Commission on January 6 this year and are scheduled to be implemented on July 3 this year.

Bank employees, taking advantage of their "closeness to the water", have repeatedly committed illegal acts such as abusing their power, taking bribes, and operating in secret and illegally handling business, which has seriously disrupted the order of the financial sector. As regulatory authorities have successively introduced supervisory policies for senior managers of financial institutions, it remains to be tested by the market whether the internal business compliance issues of banks and other institutions can be eliminated from the top.

Despite the bank's internal personnel and business management issues, there is no doubt about its performance last year. According to the bank's 2020 financial report, as of the end of 2020, the total assets of Bank of Jiangsu Co., Ltd. were 2.34 trillion yuan, a year-on-year increase of 13.21%, and the operating income was 52.026 billion yuan, and the net profit attributable to shareholders of listed companies was 15.066 billion yuan, a year-on-year increase of 15.68% and 3.06% respectively.

As of the end of 2020, the bank's non-performing loan ratio dropped by 0.06 percentage points from the beginning of the year to 1.32%, and provision coverage ratio increased by 23.61 percentage points from the beginning of the year to 256.40%.As of the end of the first quarter of this year, the bank achieved operating income of 14.509 billion yuan and net profit attributable to listed shareholders of 5.023 billion yuan, a year-on-year increase of 16.95% and 21.71% respectively.

Bank of Jiangsu was officially opened for business on January 24, 2007. It is headquartered in Nanjing, Jiangsu. On August 2, 2016, it was listed on the Shanghai Stock Exchange main board. As of now, the bank has a registered capital of 14.77 billion yuan, and has 17 branches and 4 subsidiaries including Suyin Financial Leasing Company, Suyin Financial Management Company, Suyin Kaiji Consumer Finance Company, and Suyin Rural Bank. It has a total of 533 branches and more than 15,000 employees.

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