Liaoning Rural Credit Cooperatives announced on July 3 that Shenyang Rural Commercial Bank would take over two banks, including Liaoyang Rural Commerical Bank Co., Ltd and Liaoning Taizihe Village Bank Co., Ltd. Previously, Jiang Dongmei, the former president of Liaoyang Rural Commercial Bank had fled overseas and was then arrested.
According to the announcements, Shenyang Rural Commercial Bank continues to process the transaction media such as passbooks, deposit certificates, and band cards processed by the two banks. The safety of funds and transactions will not be affected.
Jiemian News compares this undertaking to “a snake swallowing image.”
As of 2021, the total assets of Shenyang Bank were nearly $9.7 billion.
As of 2019, the total assets of Liaoyang Bank were over $25 billion.
Liaoning Taizihe has not disclosed its annual report for two consecutive years. Therefore, its actual business situations are unknown.
Liaoyang Banks’ annual reports for the last two years are also left uncovered. In October 2021, its former president Jiang Dongmei was accused of taking bribes and illegally issuing huge-sum loans. She fled China in March and then was arrested after seven months.
She stated in the speech in 2018 that she would mainly focus on supporting supply chain businesses with Liaoning Zhongwang Group, with more than $4.5 billion in loans issued throughout the year. However, the total loan amount of the Liaoning Zhongwang group reached $5.3 billion.
In recent years, corruption cases in the financial sector have also occurred frequently in Liaoning.
On May 13, the China Banking and Insurance Regulatory Commission (CBIRC) representative said that since 2021, Liaoning had been hit hardest by financial risks. Notably, 6 3 top leaders of small and medium-sized banks have taken liens and criminal coercive measures.
Since the 19th National Congress of the Communist Party of China in 2017, 630 cases have been filed within the CBIRC system, 83 people have been retained, and 73 have been transferred to judicial organs.
According to Caixinglobal, China has also been hunting fugitives accused of corruption over the past few years. China’s anti-graft agency reported that from 2014 to 2019, over 7,000 fugitives were repatriated to the country from more than 120 nations and regions. Moreover, $2.8 billion of illicit money has been recovered.