(Yicai) Jan. 4 -- China placed 104 senior managers from financial institutions under investigation for suspected corruption last year, 50 percent more than in 2022, as the country continues to clamp down on embezzlement in the financial sector.

The exchange of power and money during the credit approval process is not an infrequent occurrence, according to Yicai research. Most of the cases are connected to the unlawful granting of credit and more than 70 of the 104 executives under investigation have worked at banks.

For example, Liu Liange, the former chairman of the board of directors of Bank of China, is accused of interfering in credit schemes, issuing loans illegally, causing financial risks and accepting huge bribes from people who profited from these.

Others under probe include Liu Lixian, former secretary of the discipline inspection commission of the Industrial and Commercial Bank of China, Zhang Hongli, ex-vice president of ICBC, two former vice presidents of China Development Bank and two ex-chairmen of China Everbright Group.

All of China's six biggest state-owned commercial banks, with the exception of the Postal Savings Bank of China, had staff under investigation, numbering 36, the three major policy banks had 13 while joint-stock, commercial, agricultural and commercial banks had 21. ICBC had the most people under probe at 10.

The root cause of corruption at banks may lie in inadequate internal controls, an industry insider told Yicai. As lenders are the main channel through which Chinese companies raise funds, high-ranking executives at head offices or local branches have a lot of power. Internal checks and balances are not working as well as they should.

Editor: Kim Taylor