Corporate governance mechanism to be introduced
(Chinanews.cn)
Updated: 2006-07-25 15:17
The corporate governance mechanism of setting up chief executives will be
introduced in China's medium and small commercial banks. According to China's
banking watchdog, the banks will create the positions of Chief Risk Officer,
Chief Information Officer, and Chief Financial Officer step by step.
A concerned chief with China Banking Regulatory Commission said that recently
in a seminar on the reform of medium and small commercial banks.
In recent years, China's medium and small commercial banks have made
significant improvements in the reform of structures of the corporate governance
and organization, and in improving enhancing the basic system and information
system as well as the incentive and restrictive mechanism. Now the structures of
the corporate governance have come into being and the business operation has
made initial success.
However, the chief said there are still some problems in the governance of
medium and small commercial banks. For instance, the responsibility
identification of the board and the senior executives should be further made
explicit; the decision-making ability of the board should be enhanced; the
functions of the independent director haven't been brought into full play; the
independence of the board should be improved further.
The chief said the medium and small commercial banks should enhance their
communication with the regulatory departments, providing immediate feedbacks,
opinions and suggestions, to push forward the reform and innovative endeavor of
commercial banks.
In addition, the medium and small commercial banks should improve the ability
of risk control, and pay attention to the businesses and districts with high
risks.
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