The banking regulator has urged commercial banks to make further efforts to
strengthen market risk management.
The management capacities on market
risks by commercial banks has been considerably enhanced in recent years, but
"there are still many weak points that need to be addressed", said the China Banking Regulatory Commission (CBRC) in a notice
yesterday.
The CBRC requires all commercial banks to take measures, like
appointing special executives and creating independent departments with
experienced staff members to manage market risks, before April
30.
Commercial banks' boards of directors or special committees under the
board should be responsible for mapping out strategies or policies to cope with
market risk management and should listen to reports on the issue for the whole
bank at least every six months, the CBRC said.
Commercial banks should
bring their overseas operations under their market risk management and establish
a unified information system.
The regulator also required commercial
banks to establish timely and effective reporting and analysis systems and
emergency-dealing systems.
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