6.25 Million Record Fine Looms, Quanzhou Bank Chairman Jiang Wenpeng Takes Over to Face Compliance Crisis

[Text by Yushan Guanjin Studio]

In February of this year, the Quanzhou Regulatory Branch of the China Banking and Insurance Regulatory Commission disclosed administrative penalty information, revealing that Quanzhou Bank Co., Ltd. was fined a total of 6.25 million yuan for multiple violations. This set a new record for the highest single penalty since the bank’s establishment. Several responsible individuals were also held accountable, demonstrating the regulatory authority’s zero-tolerance stance toward violations in the banking industry.

According to the public notice, Quanzhou Bank was involved in eight violations, covering key operational areas such as credit approval, data reporting, deposit business, bill operations, and internal control management. Specific issues included false data on micro and agricultural loans, inadequate risk classification of credit assets, poor management of personal loan business, improper deposit acceptance, inaccurate EAST data reporting, insufficient loan “three checks,” negligence in handling bank acceptance bills, and inadequate third-party data security risk management.

Screenshot from the official website of the China Banking and Insurance Regulatory Commission

This penalty strictly follows the “double penalty” principle. In addition to hefty fines at the institutional level, responsible individuals also faced disciplinary actions. Among them, Lin Kunming was permanently banned from working in banking. Yang Wei, Luo Xueru, and Chen Xiaochun received warnings and fines of 50,000 yuan each, clearly conveying the regulatory stance that violations will be penalized both at the institution and individual levels.

Public information shows that the 6.25 million yuan fine is not an isolated incident but reflects recent concentrated compliance risks at Quanzhou Bank. By 2025, the bank and its branches had received multiple regulatory penalties, totaling over one million yuan in fines and penalties. Notably, in December 2025, two branches were fined consecutively: Putian Branch was fined 1.05 million yuan for issues including inadequate pre-loan investigations for commercial property and project loans, poor post-loan management, insufficient review of off-balance sheet trade backgrounds, and poor employee conduct; Cangshan Branch in Fuzhou was fined 550,000 yuan for failing to verify the trade background of bank acceptance bills and collateral sources, as well as illegal collection of loan fees.

Alongside compliance risks, Quanzhou Bank’s operational performance and asset quality are also under significant pressure. Financial data shows that 2025 marked a turning point for the bank’s operations, with operating income declining by over 12% in the first three quarters and net profit dropping by 23%. In the third quarter alone, the bank experienced its first quarterly loss since its renaming in 2009, indicating a substantial weakening of profitability. Asset quality has also deteriorated, with non-performing loan (NPL) ratios rising for several years, exceeding industry averages by the end of 2024. The loan loss reserve coverage ratio has continued to decline, approaching the regulatory bottom line of 150% in the third quarter of 2025, putting risk resilience under pressure.

Additionally, in 2025, Quanzhou Bank’s core management underwent intensive changes. The former chairman retired upon reaching retirement age, and Jiang Wenpeng succeeded him as chairman. Jiang Wenpeng has held multiple key management positions within the bank, with extensive experience in banking, including roles in risk management and corporate finance. Before his appointment, he served as the bank’s president and vice president, deeply involved in strategic decision-making and daily operations. The concentration of leadership changes has somewhat impacted the continuity of strategic execution and the effectiveness of internal control transmission, further increasing operational volatility and risk management challenges.

Regarding ownership structure, Quanzhou Bank has no controlling shareholder. The top ten shareholders hold less than 60% of the shares, with the largest being Quanzhou State-owned Assets Investment and Operation Co., Ltd., holding 11.67%. Other major shareholders include Lianjie Investment Group Co., Ltd. (6.9%), Xiamen Xiangyu Dongyang International Trade Co., Ltd. (6.32%), and Xiamen Hongmentang Investment Co., Ltd. (5.05%).

Screenshot from Qichacha

As of the third quarter of 2025, the bank’s total assets reached 178.418 billion yuan, a 1.77% increase from the end of the previous year. However, operational performance declined sharply, with operating income of 2.396 billion yuan in the first three quarters, down 12.54% year-on-year; net profit was 245 million yuan, down 23.03%. The third quarter alone recorded a net loss of 13 million yuan, the first quarterly loss since the bank’s renaming in 2009. Asset quality remains under pressure, with the NPL ratio rising from 1.52% in 2022 to 1.83% at the end of 2024. Although it decreased slightly to 1.71% by June 2025, it still exceeds the national average for commercial banks. The loan loss reserve coverage ratio continued to decline, reaching 158.7% at the end of the third quarter of 2025, nearing the regulatory red line of 150%. Capital adequacy ratio stood at 13.76% in the third quarter, down 0.36 percentage points from the end of the previous year, indicating increased pressure for capital replenishment.

As a regional city commercial bank, Quanzhou Bank focuses on serving the local economy, especially small and micro enterprises. This penalty serves both as a regulatory punishment and a warning for compliance. Industry experts believe that, amid the new normal of strict regulation and enhanced compliance, Quanzhou Bank should take this opportunity to rectify violations comprehensively, rebuild its compliance and risk control systems, and strengthen internal responsibilities. Additionally, it should improve asset quality, intensify efforts to recover non-performing loans, adjust its business structure, and reduce over-reliance on traditional interest margin businesses to achieve sustainable development.

So far, Quanzhou Bank has not publicly responded to the penalty or its corrective measures. The market will continue to watch for the effectiveness of its reforms, recovery of operational indicators, and governance initiatives under the new management.

This article is an exclusive report by Guancha.cn. Unauthorized reproduction is prohibited.