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.
(China Daily January 12, 2007)