Regulatory Compliance in Focus: Shanghai Branch of China Construction Bank Penalized with Highest Fines Among Peers

In recent years, financial regulators have continuously raised the bar for compliance in banking operations. As key pillars of the financial system, the compliance performance of branches of large state-owned commercial banks has drawn significant attention.

As an international financial center, Shanghai's financial institutions, especially the Shanghai branches of the four major state-owned banks, also place high importance on compliance work. Financial regulators have continued to take a series of measures to urge financial institutions within their jurisdiction to improve their compliance standards and support the construction of Shanghai as an international financial center.

Penalty information disclosed by financial regulators shows that in recent years, financial institutions in Shanghai, especially the Shanghai branches of the four major banks, have significantly improved their overall compliance levels. However, some banks have received large fines due to lapses in compliance and internal controls.

The penalty information indicates that in the first quarter of this year, the Shanghai branch of the Construction Bank was issued a large fine by regulators for multiple serious violations. The amount of the single fine imposed on the Shanghai branch of the Construction Bank ranks first among the Shanghai branches of the four major banks and is also among the highest for the Construction Bank's provincial-level branches.

Involved in multiple serious violations, the Shanghai branch of the Construction Bank receives a large fine

According to the administrative penalty information disclosure table released by the Shanghai Regulatory Bureau of the National Financial Supervision Administration, in the first quarter of this year, the Shanghai branch of the Construction Bank was fined 4.2 million yuan for six violations, including serious breaches of prudent operation rules in internet loan risk management, serious breaches of prudent operation rules in working capital loan management, and inaccurate five-level loan classification.

At the same time, the vice presidents of the Hongkou branch, the Sixth branch, the Yangpu branch, and the Chongming branch of the Construction Bank in Shanghai, as well as the deputy general manager of the Inclusive Finance Division of the Shanghai branch of the Construction Bank, were all warned, and some responsible persons were fined.

Although other branches of the four major banks in Shanghai also received several disclosed fines this year, both the number of fines and the total amount penalized were much lower than those of the Shanghai branch of the Construction Bank.

Comparison of provincial-level branches of the Construction Bank: The fine amount of the Shanghai branch ranks high

In comparison within the internal system of the Construction Bank, the compliance situation of the Shanghai branch has been more severe in the past two years.

Reviewing the penalty notices related to the Construction Bank from 2025 to date shows that after excluding penalties at the headquarters level, among the provincial-level branches, the single fine amount of the Shanghai branch still ranks among the highest. Below are some single fines reaching the million-yuan level:

On March 27, 2026, the Hunan branch of China Construction Bank was fined 3.2056 million yuan by the Hunan branch of the People's Bank of China for eight violations, including breaches of financial statistical regulations and account management rules.

In addition, according to publicly disclosed administrative penalty information, since 2025, the Shanghai branch of China Construction Bank and its subordinate branches have been penalized multiple times, with violations concentrated in specific areas.

Since 2025, branches of China Construction Bank in Shanghai have been repeatedly penalized for issues such as 'inadequate management of working capital loans.' The Jinshan Petrochemical branch, the First branch, and the Jiading branch of China Construction Bank in Shanghai were each fined 400,000 yuan. In March 2025, the Jiading branch of China Construction Bank in Shanghai was fined 1 million yuan by the Shanghai Financial Regulatory Bureau for severely violating prudent operating rules and improperly handling fixed asset loan business.

The violations covered by the fines prominently highlight problems in the credit business sector, while inadequate internal control mechanisms and poor enforcement are also major reasons for penalties imposed on branches.

CCB Earnings Report: Steady Performance, Head Office Advocates 'Compliance Creates Value'

As one of the state-owned major banks, China Construction Bank places considerable emphasis on compliance work, maintaining overall steady performance.

As of the end of 2025, the total assets of China Construction Bank reached 45.63 trillion yuan, a year-on-year increase of 12.47%. The bank achieved a net profit of 339.79 billion yuan for the whole year, representing a year-on-year growth of 1.04%, with operating revenue reaching 761.049 billion yuan, a year-on-year increase of 1.88%, showcasing strong profitability resilience.

Asset quality remained sound. As of the end of 2025, the non-performing loan ratio of China Construction Bank was 1.31%, down 0.03 percentage points from the previous year. The provision coverage ratio stood at 233.15%, indicating sufficient risk mitigation capabilities. The capital adequacy ratio was 19.69%, with the core Tier 1 capital adequacy ratio at 14.63%, demonstrating solid capital strength.

In its 2025 annual report, China Construction Bank explicitly stated that it would 'persistently promote compliance culture construction, deepen the concept of 'all staff proactively complying, compliance creates value,' adhere to a prudent and cautious risk appetite, and ensure business development is within the boundaries of risk prevention capabilities.'

Whether compared with peers in Shanghai or other provincial branches of China Construction Bank, the compliance standards of the Shanghai branch of China Construction Bank still need improvement.

(Article sequence number: 2043999759110377472/JW)

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