BEIJING - Chinese top banking watchdog announced an updated policy of internal control for commercial banks on Sunday as it tries to strengthen risk control and daily business management.
The latest guideline is a revised version of one released in 2002 and aims at keeping pace with development of commercial banks' regulatory policies, said the China Banking Regulatory Commission (CBRC).
Internal control refers to systemic processes used by various banks to improve their business management and risk control.
Commercial banks are ordered to set up an appraisal system covering all of subsidiary institutions and products to assess their internal control.
Banks with weak internal control will be instructed to make amendments within a specified timeframe or face punishment by the CBRC, the CBRC statement said, without providing details.
The US subprime mortgage crash, which triggered a global financial crisis, sounded the alarm bell for bank risk control globally.
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