China Arrests the Former Bank of China President on Corruption Charges
CCP Continues Anti-Corruption Crackdown
Overt Operator
October 16, 2023
China has taken its anti-corruption drive to the financial sector as the former head of one of the country's largest commercial banks, Liu Liange, former president of the Bank of China, was arrested on charges of accepting bribes and illegally granting loans.
This move comes as part of President Xi Jinping's ongoing campaign against corruption within the ruling Communist party.
The Central Commission for Discipline Inspection (CCDI), responsible for investigating corruption, announced the arrest of Liu Liange on Monday, following the initiation of the investigation in March. President Xi has made the fight against corruption a key priority during his tenure, with a particular focus on the financial sector.
Since late 2021, numerous bankers and financiers have faced investigation as authorities crack down on corruption in the industry.
In addition to targeting corruption, the CCDI has also warned the financial sector against indulging in "hedonism" and "high-end lifestyles." Banks have reportedly responded by reducing bonuses and pay for top executives.
President Xi has consistently stressed the importance of the financial sector serving the real economy, especially as China grapples with slowing growth and high youth unemployment rates. This drive against corruption aims to ensure that the financial sector operates ethically and contributes to the country's economic development.
Liu Liange, who was expelled from the Communist party last week, faces a long list of accusations. The CCDI alleges that he brought prohibited publications into the country, accepted illegal bribes, and enjoyed entertainment at private clubs and ski resorts. The charges against him also include ideological failings such as abandoning his beliefs and being unwilling to implement Communist party decisions, as well as financial and governance failings.
Liu Liange is not the only prominent figure in the financial sector to face investigation or charges. Wang Yawei, a star fund manager in China, is also under investigation, according to Reuters. In addition, Wang Bin, the former chair of China Life Insurance, has received a suspended death sentence after being found guilty of corruption by a court last month.
As the crackdown on corruption in the financial sector continues, authorities are sending a strong message that unethical practices will not be tolerated. The arrests and investigations serve as a warning to others involved in financial institutions to adhere to the highest standards of integrity and transparency.
The Bank of China, as one of the "big four" state-owned banks, will likely face increased scrutiny and pressure to ensure that its operations are free from corruption. This development highlights the determination of the Chinese government to root out corruption and create a fair and transparent financial system.