Analysis of Postal Savings Bank of China's 2025 Penalty Cases and Risk Control System Vulnerabilities

Based on the latest information retrieved, this report provides a systematic analysis of the penalty cases of the Postal Savings Bank of China (PSBC) in 2025 and the vulnerabilities in its risk control system.

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According to data from Qiyeyujingtong (Enterprise Early Warning System), PSBC received a total of

in 2025, with total fines and confiscations amounting to [1]. Among them:

• Institutional penalties: 96
• Individual penalties: 125
• Average penalty amount: RMB 549,800

Time	Penalty Recipient	Fine Amount	Main Violations
September 2025	Head Office	RMB 27.9167 million	Imprudent management of loan business, internet loan, performance assessment, and cooperative business[2]
December 2025	Credit Card Center	RMB 3 million	Incomplete internal control systems, unauthorized operation of commodity telemarketing installment business[3]
2025	Henan Branch	RMB 3.6 million	Lax pre- and post-loan management, misappropriation of credit funds[1]

• Guangdong Branch
  : Total fines of RMB 1.7654 million
• Hebei Branch
  : Fined RMB 2.21 million
• Hainan Branch
  : Fined RMB 1.87 million (for withholding fiscal deposits)
• Sichuan Branch
  : Fined RMB 1.6 million
• Jinhua Branch, Zhejiang Province
  : Fined RMB 1.9 million[2]

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• “Dereliction of duty in the three loan checks” is the most frequently cited violation[1][2]
• Unauthorized relaxation of review requirements for borrowers’ solvency and the authenticity of down payments
• Dereliction of duty in pre-loan investigations resulted in unqualified borrowers entering the credit system

• The issue of “misappropriation of loan funds” occurs frequently[1]
• Credit funds illegally flowed into restricted areas
• Inadequate payment management and control

• Lax post-loan management, failing to detect and handle risks in a timely manner
• Inaccurate classification of credit assets[1]
• Missing the optimal timing for risk mitigation, which may lead to a concentrated outbreak of non-performing loans

In the process of rapidly expanding its online business, PSBC has exposed three major shortcomings:

1. Risk Model Defects
   : Intelligent risk control models failed to effectively identify online loan risks
2. Weak Data Governance
   : Insufficient protection of customer information and data quality control
3. Lax Management of Cooperative Institutions
   : Imperfect access and monitoring mechanisms for third-party cooperative institutions[1]

• In December 2025, the Credit Card Center was fined RMB 3 million for six illegal acts[3]
• Unauthorized operation of commodity telemarketing installment business
• Collection of full handling fees for early repayment
• Imprudent credit granting management

• Unauthorized outsourcing of card issuance and marketing businesses
• Inaccurate submission of EAST (Enhanced Analysis and Surveillance Tool) data
• Incomplete internal control systems[3]

• Imprudent performance assessment management, and incentive mechanisms may induce violations[1]
• Some employees ignored compliance bottom lines in pursuit of performance targets

• Inadequate employee behavior management
• Insufficient compliance awareness and risk prevention capabilities at grassroots institutions[3]
• Some responsible persons were severely punished with a lifetime ban from engaging in banking work[2]

• Imprudent data management, which may lead to customer information leakage and transaction data distortion
• Unsound foundation for risk measurement models[1]
• Errors in EAST data submission

• In 2024, PSBC invested RMB 12.296 billion in information technology, but the efficiency of compliance control did not improve synchronously[3]
• Insufficient efficiency in converting digital risk control systems into compliance management capabilities

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1. Imbalance between Scale Expansion and Compliance Development
   • As of the end of September 2025, PSBC’s total assets reached RMB 18.61 trillion, representing a 63.9% increase compared to the end of 2020[3]
   • The management complexity of nearly 40,000 business outlets has escalated alongside business expansion
   • The standardization of compliance management failed to keep pace with the speed of business development

2. Inconsistent Regional Management Standards
   • Regional economic disparities and diverse customer structures pose higher demands on compliance management
   • Poor transmission of compliance standards to grassroots institutions
   • Failure to effectively define and enforce compliance boundaries for models such as marketing outsourcing[3]

Rectification Area	Specific Measures
Process Restructuring	Conduct comprehensive compliance reviews covering the entire chain of credit card marketing, credit granting, and fee collection; establish strict access and assessment mechanisms for outsourcing service providers
Risk Enhancement	Improve the sensitivity of transaction monitoring systems; optimize credit approval models; standardize and digitize key business processes
Data Upgrade	Strengthen data governance; improve the accuracy of EAST data submission; enhance the supporting role of technology in compliance management

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Despite frequent regulatory penalties, PSBC maintains strong risk resilience:

• Non-performing loan ratio of 0.94%, far below the industry average
• Provision coverage ratio of 240.21%
• Capital adequacy ratio of 14.66%
• Liquidity coverage ratio of 229.21%[3]

1. Short-Term Impact
   : Fine losses and fee income may face short-term downward pressure
2. Long-Term Pressure
   : Rising compliance costs will further squeeze profit margins, with the cost-to-income ratio already reaching 57.4%[3]
3. Management Transformation
   : The newly appointed Chairman Zheng Guoyu has a compliance background, which may drive the reshaping of PSBC’s risk control system

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[1] QQ News - PSBC Fined Again! 221 Penalties Issued in 2025 (https://news.qq.com/rain/a/20260112A06OEB00)
[2] Xinhua Daily Network - Imprudent Loan Business Management Leads to RMB 27.91 Million “Sky-High” Fine for PSBC (https://www.xhby.net/content/s68dde8c1e4b0197fae4867ca.html)
[3] Sina Finance - RMB 3 Million Fine Serves as a Warning: PSBC’s Dilemma Between Expansion and Compliance (https://finance.sina.com.cn/tech/roll/2025-12-26/doc-inhecipr0896783.shtml)