Bank of China controversies

Conviction of Liu Lian'ge

A Jinan court sentenced Liu Lian'ge to death with a two-year reprieve, confiscation of all personal property and related penalties after finding him guilty in the bribery and unlawful-loan case.

Five banks fined a total of 366 million yuan

Fine or penalty

China's banking regulator imposed administrative penalties on Huaxia Bank, Bohai Bank, Bank of China, China Merchants Bank and Bank of East Asia China, with fines totaling about 366 million yuan. The source does not specify the underlying violations.

Crude Oil Bao investors prepare collective lawsuit against Bank of China

Public backlash

In April 2020, investors in Bank of China's Crude Oil Bao product organized rights groups and prepared a collective lawsuit against the bank, according to a report. The report states that the product's settlement at -$37.63 per barrel angered investors and prompted these preparations. The report describes the investors' preparations only; it does not establish that a lawsuit was filed. No further details on participants, filing dates, amounts, or outcomes are provided in the source.

Investors allege deficiencies in Bank of China's Crude Oil Bao product

Issue disclosure

In April 2020, investors in Bank of China's Crude Oil Bao product reported severe losses after oil futures prices fell. Some of these investors alleged that the product's design and risk disclosures were deficient. According to the report, investors also said they wanted to pursue a collective lawsuit. The report does not establish that a court has found any wrongdoing. The event concerns investor allegations and stated intentions rather than any adjudicated outcome.

Investors in Bank of China’s Crude Oil Bao reported severe losses after oil futures prices fell, and some alleged that the product’s design and risk disclosures were deficient. The article also reports that investors said they wanted to pursue a collective lawsuit; it does not establish a court finding of wrongdoing.

Regulator fines Bank of China over crude oil product violations

Fine or penalty

In December 2020, China's banking and insurance regulator announced administrative penalties related to Bank of China's crude oil product risk incident. The penalties included a combined fine of 50.5 million yuan imposed on the bank and its branches. The regulator also suspended related business and ordered the bank to review personnel responsibilities and rectify the identified problems. The announcement concerned violations connected to the crude oil product and set out both financial penalties and corrective requirements for the bank.

Bank of China responds to the 原油宝 penalty

Company response

In December 2020, Bank of China issued a response regarding the penalty connected to its 原油宝 product. According to the statement, the bank said it accepted the penalty, would implement the regulatory measures, hold responsible personnel accountable, strengthen remediation, and continue communicating with customers to seek a resolution. The response did not specify the amount of the penalty, the identities of the personnel involved, or the terms of any resolution with customers.

Bank of China said it accepted the penalty, would implement the regulatory measures, hold responsible personnel accountable, strengthen remediation and continue communicating with customers to seek a resolution.