Banks made more effort and achieved better results in the second quarter in their fight against malpractice and graft, the financial watchdog said yesterday.

The China Banking Regulatory Commission (CBRC) ordered 56,999 banking institutions across the country to conduct self-inspections between April 10 and June 30, and later sent 3,690 inspection teams to double-check 40 percent of them.

The inspections uncovered 1,296 cases of malpractice involving 117.35 million yuan ($15.5 million) and 705 bank staff. Of those, 996 cases have subsequently been dealt with.

The CBRC issued verbal warnings to 487 individuals, while 52 people were fined and 136 received administrative punishments.

In addition, 156 graft cases were uncovered, involving 17.66 million yuan and 177 bank workers.

Of those, 106 cases, involving 112 people and 13.82 million yuan, have since been referred to the judiciary.

The regulator upped its efforts to combat graft last year as part of a nationwide campaign by the central government.

In 2006, the banking regulator dealt with 113 graft cases, involving 26.08 million yuan and 164 people.

The inspections carried out and punishments issued in the second quarter will further regulate banks' operations, improve market competition and strengthen the awareness of compliance requirements among staff, the CBRC said.

The self-inspections also helped banks to identify loopholes and deficiencies in their management systems, which will help them to improve internal controls in the future, it said.

The CBRC said it will boost its anti-graft campaign in the second half of the year.