SHANGHAI, Dec 5 (Reuters) - State-owned Bank of China (BoC)
3988.HK 601988.SS has been fined 50.5 million yuan ($7.73
million) over irregularities in a loss-making product linked to
crude oil, the banking regulator said on Saturday.
The China Banking and Insurance Regulatory Commission began
an investigation after BoC settled trades for its product at
negative prices following April's crash in U.S. crude futures,
leaving many retail investors facing losses. The regulator levied penalties on the bank and some of its
branches for what it called the bank's irregular product
management, imprudent risk management, incomplete internal
controls and non-compliant sales management.
In a statement on its website, the regulator added that it
had issued warnings and fines to four people in the bank's
global markets department, and suspended "access for Bank of
China's relevant business and branches", but did not elaborate.
In response, BoC said in a website statement it was
"determined to accept the penalties" and take relevant
regulatory measures.
The bank is considering compensating investors up to a fifth
of original investments in the products and shouldering all
losses in negative territory, sources told Reuters in May. That
could amount to as much as 6 billion to 7 billion yuan.
Regulators have also asked commercial banks to halt sales of
wealth management products that could leave investors with
unlimited losses, sources said.
($1=6.5301 Chinese yuan)