Banking Regulator Puts New Emphasis on Governance, Data Management
What’s new: China’s top banking regulator revised its seven-year-old supervisory assessment criteria for commercial banks, putting more emphasis on corporate governance and data security.
The China Banking and Insurance Regulatory Commission (CBIRC) issued a revision Wednesday to the guidelines on supervision and assessment of commercial banks. It was the first change since the guidelines went into effect in 2014.
Compared with the previous version, the new rules reduce the weight of profitability and add corporate governance and data management into factors for deciding what category of supervision an institution will be subject to.
More to know: The supervision criteria also include institutions’ capital adequacy ratio, asset quality, liquidity risk exposure, market risks and technology risks.
In a statement, the CBIRC said the new guidelines improve the assessment methodology, increasing flexibility and adaptability.
Industry experts said the assessment would affect institutions’ accessibility to certain supportive monetary policies.
Quick Takes are condensed versions of China-related stories for fast news you can use. To read the full story in Chinese, click here.
Contact reporter Han Wei (email@example.com) and editor Bob Simison (firstname.lastname@example.org)
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