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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