7 banks fined for granting excessive credit limit in wake of family suicide

(ECNS) -- Shanghai's banking regulator has imposed an altogether 2.4-million-yuan ($391,319) fine on seven banks for granting excessive credit limits in follow-up to the suicide of a local family, thepaper.cn reported, citing insiders.

Shanghai Office of China Banking Regulatory Commission revealed via its website on Friday that China Mingsheng Bank and Bank of China were fined 500,000 yuan ($81,524) respectively, Industrial and Commercial Bank of China, Industrial Bank, Bank of Communications, and Citibank 300,000 yuan ($48,915), and Shanghai Pudong Development Bank 200,000 yuan ($32,610).

The banks were fined for violating credit card regulations, as they granted excessive credit limits to clients, but failed to check their private information, or supervise abnormal transactions.

Such violations involved two clients surnamed Zhang and Lin, according to the released information.

Insiders said both were part of a Shanghai family that committed suicide after racking up credit card debt they were unable to pay back in June.

A mother and father, as well as their 25-year-old son succumbed to lethal fumes released by a burning basin of charcoal at their home, according to media reports.

It was said the family speculated on futures that failed and ran heavily into debt using more than ten credit cards. The exact sum exceeded 500,000 yuan ($81,524).

The office has since stressed discipline in maintaining credit limits and proper supervision of transactions.