The China Banking Regulatory Commission has told banks to take prompt action to combat loan fraud and other illegal transactions amid a series of abuses that caused lenders losses totaling hundreds of millions of dollars.

The order came after the resignation of the chairman of one of the biggest state-run commercial banks, China Construction Bank, amid reports he was under investigation for alleged corruption.

One more fraud case is connected with a former employee of another major state-owned institution, Bank of China, who is accused of embezzling US$6 million (euro4.6 million), state media announced on Sunday.
The biggest bank fraud case disclosed to date deals with a fugitive Chinese banker, deported by the United States last April, who was accused of helping to steal $485 million.

13 instructions issued by the commission are aimed at tightening lending requirements, stricter auditing, regular estimation of top managers and more careful handling of client accounts.