China central bank finds 40 banks in violation of interbank rules

China's central bank has found 40 banks in violation of interbank account regulations and have ordered them to rectify the problem within three to six months, financial magazine Caixin reported on Tuesday, citing a document. Large state-owned lenders, including China Construction Bank, Bank of China (BOC), Agricultural Bank of China, China Minsheng Banking Corp, China Merchants Bank , and Ping An Bank were told to conduct an overhaul due to breaching the rules, Caixin reported.
The central bank also found Hengfeng Bank, Bank of Nanjing and BOC's Shanghai branch had severely violated regulations, the report said. Caixin did not provide further details on the irregularities, but the official Xinhua news agency said in a Wednesday report that the central bank found the proper processes for opening accounts had not been followed. During the three- to six-month period in which the banks are to rectify the problem, they will not be allowed to conduct interbank account businesses, the magazine said.