As the year draws to a close, Bank of Suzhou, a key player in the Yangtze River Delta region, has found itself under scrutiny following two risk management incidents that have raised questions about the effectiveness of its control systems. The bank, with assets exceeding 770 billion yuan, faces a critical juncture in optimizing its risk management framework amid a loan recall dispute and the unexpected early retirement of its long-serving risk control director.
**Loan Recall Exposes Risk Control Gaps: 49 Million Yuan Recovery in Jeopardy** On December 3, Wuxi Snowman Environment Technology Co. disclosed in an announcement that Bank of Suzhou's Wuxi branch had filed a lawsuit over a financial loan contract dispute, seeking to recover 48.75 million yuan in principal and 267,000 yuan in interest—totaling nearly 49.02 million yuan. The bank had initially granted Snowman Environment a 60 million yuan loan in December 2023, set to mature on December 14, 2025. However, less than a month before maturity, Snowman Environment revealed it faced pre-restructuring proceedings due to insolvency, prompting the bank to recall the loan early.
Despite freezing 11 of Snowman Environment’s bank accounts, only 3.57 million yuan was recoverable—far short of the claimed amount. Industry experts highlight this as evidence of Bank of Suzhou’s inadequate financial tracking and risk assessment, exposing flaws in its pre- and post-loan management processes even amid stricter regulatory requirements.
**Veteran Risk Director Retires Early After 12-Year Tenure** Amid the loan recall fallout, Bank of Suzhou announced on December 11 that Hou Bin, its 57-year-old risk control director, had resigned "due to age," effective December 10, though he remains as a deputy researcher. Notably, Hou’s departure—before reaching retirement age—coincides with the loan controversy, sparking speculation about internal risk control overhauls.
Hou, a stalwart in the bank’s risk management, joined its predecessor in 1999 and played a pivotal role in shaping its "comprehensive, full-cycle" risk control system. His 2024 compensation stood at 1.69 million yuan, and he retains 757,800 shares. The bank has yet to name his successor, leaving a leadership gap as regulatory pressures mount.
**Diverging Asset Quality Metrics Highlight Sector Risks** Bank of Suzhou’s H1 2025 data reveals growing risk pressures: non-performing loans (NPLs) rose to 3.01 billion yuan, while overdue loans hit 3.59 billion yuan. Though its NPL ratio held steady at 0.83% with a 420.59% provision coverage ratio, regional and sectoral vulnerabilities emerged.
In Suzhou, its core market (55.88% of loans), the NPL ratio climbed 0.09 percentage points to 0.80%, contrasting with improvements elsewhere in Jiangsu. High-risk sectors like agriculture (1.54% NPL), manufacturing (1.16%), and wholesale/retail (0.94%) outpaced the bank’s average, underscoring cyclical risks in its key lending areas.
Despite robust performance—7.76 trillion yuan in assets (+11.87% YoY) and 4.48 billion yuan net profit (+7.12% YoY)—the dual challenges of risk control gaps and leadership transitions loom large. The bank’s ability to strengthen risk protocols, mitigate sectoral exposures, and stabilize its management team will be crucial for long-term resilience, with markets closely watching its next moves.
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