BOC unaffected by RMB 160 mln loan scandal

Author:  2007-7-30 14:29:03

May. 24, 2007 (China Knowledge) – The Bank of China (BOC)<3988><601988>, the country's second largest lender, has not been affected by the RMB 160 million loan scandal surrounding its Shenyang branch, the Shanghai Securities News recently reported. According to Xinhua news, the bank has recovered RMB 120 million from the major fraudulent creditor by confiscating its assets, announced BOC spokesperson Wang Zhaowen. In a BOC investigation into its retail loans in November 2004, a number of car dealers from Shenyang, capital of Liaoning Province, were found to have defrauded large quantities of money with forged documents from the bank's Shenyang branch. The main borrower behind the scandal, the Shiji Huarong Yafei Automotive Trading Co., was awarded loans by the branch totaling RMB 160 million. Copyright © 2007 www.chinaknowledge.com Send feedback or comments to: news@chinaknowledge.com For more news, financial weekly reports, business guides to China and other premium information, subscribe to China Knowledge today: To access our page on Bloomberg, type CKFI