New anti-corruption drive in Chinese banks

Executives of state-owned banks told that ostentation is a no-no.

China will forbid executives of its state-owned banks and financial companies from spending extravagantly on cars and houses in another effort to deter corruption and official waste.

It has issued “12 regulations” that will take effect beginning December that command representatives from state-owned banks or financial institutes belonging to the central government to stay within the guidelines of spending allowed on cars.

The rules prohibit these executives from using public funds to pay for the individual's residential purchases, residential renovations, property management fees and so on.

The government said executives from these companies were not allowed to violate guidelines for using public funds to accumulate high expenses for entertainment activities.

The 12 regulations will be issued jointly by the Ministry of Finance, the Ministry of Supervision and the National Audit Office.