BEIJING, June 23 (Xinhua) -- Chinese auditors found last year policy-based finance institutions misallocated more than 20 billion yuan (2.9 billion U.S. dollars) of policy loans, chief auditor Liu Jiayi said Wednesday.
Liu, Auditor-General of the National Audit Office (NAO), made the statement in a report to the 15th session of the Standing Committee of the 11th National People's Congress (NPC), China's top legislature.
Auditors found some policy loans in policy-based financial institutions had not been fully implemented, in violation of rules, or exceeded their permitted business scope, Liu said.
Some policy-based financial institutions largely focused on commercial operations, which affected policy-related operations, Liu said.
Auditors also found that some new loans granted by the Industrial and Commercial Bank of China, the China Construction Bank and the Bank of China were unreasonable in terms of their structure.
Among the structural problems were the high proportion of medium and long-term loans, a rapid growth in real estate loans and insufficient support for the agricultural industry and small enterprises, Liu said.
Some financial institutions had been trying to fix these problems found by auditors, said Liu.
As of March, the Agricultural Development Bank of China had recovered 703 million yuan (103 million U.S. dollars) in loans and 463 personnel had been disciplined. Other financial institutions, including the China Export &Credit Insurance Corporation, also made policy adjustments, according to the report.