BOC vows to be tough

The Bank of China (BOC) has taken steps to limit financial losses arising from some 200 dubious loans granted between December 2000 and June 2002.

The bank, China¡¯s top foreign exchange lender, has revealed measures to stem further credit-control breaches after several executives were sacked.

Xinhua reported over the weekend senior bank staff, including a deputy director of a branch's business department, were sacked after a Beijing property developer used fake documents to borrow 645 million yuan (US$77.89 million).

Since reporting the case to the Public Security Bureau, BOC had taken steps to limit financial losses arising from nearly 200 loans extended between December 2000 and June 2002, Xinhua said, citing bank spokesman Wang Zhaowen.

Central China Television quoted Wang on Sunday as saying the bank would tighten loan procedures and step up bank staff training.

"The Bank of China will carry out a thorough examination of the whole sector and all business offices to find out where the loopholes are," Wang said.

¡°We will strengthen education among all staff and further transform the mechanism of granting loans and transform business procedures.¡±

BOC's efforts to take on foreign stakeholders and list shares at home and overseas, which analysts said could raise up to US$4 billion, have been clouded by an embezzlement scandal.

The bank took the unusual step in February of appointing an American, former HSBC executive Lonnie Dounn, as chief credit officer.

Source: Xinhua