Bank of Suzhou's Risk Chief Steps Down Early Following Loan Recall Controversy

Two risk management incidents at Bank of Suzhou have drawn market attention.

First, on December 3, Wuxi Snowman Environment Technology Co., Ltd. disclosed that Bank of Suzhou had filed a lawsuit. The bank’s Wuxi branch initiated legal action over a financial loan contract dispute, applying for pre-litigation asset preservation and freezing several of the company’s bank accounts.

In December 2023, Bank of Suzhou’s Wuxi branch signed an 80 million yuan loan agreement with Snowman Environment, ultimately disbursing 60 million yuan, with a maturity date of December 14, 2025. However, on November 19, 2025, Snowman Environment announced that Jiangsu Xinniu Cable Co., Ltd. had applied for pre-reorganization, citing the company’s inability to repay debts. To avoid bad loans, Bank of Suzhou sought early repayment, demanding 48.75 million yuan in principal and 267,000 yuan in interest. Currently, 11 of Snowman Environment’s bank accounts, totaling just 3.57 million yuan, remain frozen.

The difficulty in recovering funds highlights gaps in Bank of Suzhou’s loan assessment and risk control systems.

Then, on December 11, the bank announced the resignation of its Chief Risk Officer, Hou Bin, effective December 10, 2025, citing age reasons. Though 57 and not yet at retirement age, Hou will transition to a deputy researcher role. In 2024, his compensation was 1.69 million yuan.

Hou Bin joined Bank of Suzhou’s predecessor, Dongwu Rural Commercial Bank, in 2005, serving as head of risk management before becoming Chief Risk Officer in 2013. His departure raises questions about the bank’s future risk management strategies.

As of mid-2025, Bank of Suzhou’s non-performing loan (NPL) balance stood at 3.01 billion yuan, up 247 million yuan from year-end 2024, with an NPL ratio of 0.83%. The provision coverage ratio was 437.91%, and the loan-to-deposit ratio was 3.63%.

Geographically, 55.88% of loans were in Suzhou, where the NPL ratio rose 0.09 percentage points to 0.80%. Other Jiangsu regions accounted for 44.12%, with the NPL ratio dropping 0.14 percentage points to 0.87%. Sector-wise, NPLs were concentrated in agriculture (1.54%), manufacturing (1.16%), and wholesale/retail (0.94%). Overdue loans totaled 3.59 billion yuan, up 140 million yuan from year-end 2024.