, November 24. According to the official website of the China Banking and Insurance Regulatory Commission, the General Office of the China Banking and Insurance Regulatory Commission recently issued the "Notice on Continuously Doing a Good Job in the Construction Year of Internal Control and Compliance Management for Banking Institutions". The notice pointed out that all banking institutions should Resolutely abandon misconceptions and extensive business models such as deviating from the main business, turning the real to the virtual, and blindly expanding, adhere to the correct development direction, and actively perform social responsibilities.

  The notice stated that it should be clearly understood that the current economic and financial environment facing the banking industry is complex and severe, and some long-term accumulation of contradictions and problems are concentratedly exposed.

Some banks are ineffective in implementing national macro policies, some bank credit management issues have been repeatedly investigated and committed, and some bank regulatory arbitrage methods have been renovated.

In particular, the recent occurrence of risk events such as certificate of deposit pledged notes business, personal information security, etc., has a bad social impact, damaging the overall reputation of the banking industry, and exposing related banks’ weak awareness of risk compliance, insufficient assessment of potential business risks, and core management systems and controls. Problems such as lack of measures and prominent moral hazards of internal employees.

There is an urgent need to learn lessons and draw inferences from one another to speed up the correction of management deficiencies and loopholes, and fundamentally reverse the situation of focusing on benefits over compliance and internal control requirements to make way for business development.

  In order to urge banking institutions to build a "firewall" for internal control and compliance, effectively safeguard the legitimate rights and interests of financial consumers, and lay a solid foundation for the high-quality development of the banking industry, with the approval of the China Banking and Insurance Regulatory Commission, the relevant matters are notified as follows:


Stick to the main responsibilities and main business, and firmly implement the major decisions and deployments of the central government


On the whole, banking institutions can consciously and proactively translate the various requirements of the Party Central Committee and the State Council on economic and financial work into their own development strategies, internal control goals, and management actions.

However, there are still banks that have failed to implement major decisions and deployments, falsely reported inclusive financial indicators, funds flowed into the real estate sector in violation of regulations, illegally added hidden debts to local governments, and implemented fee reduction and profit reduction measures.

All banking institutions must further improve their positions, resolutely unify their thoughts and actions into the spirit of the Sixth Plenary Session of the 19th Central Committee of the Party, resolutely abandon misconceptions and extensive business models such as deviation from the main business, de-realization, and blind expansion, and insist on correctness. Development direction, and actively fulfill social responsibilities.

We must strive to explore financial services that promote technological innovation, increase support for advanced manufacturing and independent controllable industrial chains and supply chains, and innovate green financial products and services around the realization of the "dual carbon" goal.

We must vigorously develop inclusive finance, continuously improve financial services for small and micro enterprises and private enterprises, allocate more financial resources to key areas and weak links of rural revitalization, and ensure that the various policy requirements for serving the real economy are implemented.


Focus on risk vulnerabilities and accelerate the completion of shortcomings in internal control and compliance management


Judging from the self-inspection and regulatory inspections of institutions, problems such as inadequate loan "three inspections", inadequate unified credit management, and insufficient implementation of sales suitability requirements are still outstanding.

All banking institutions must combine normalized internal control and compliance promotion with periodic remedial shortcomings and elimination of stubborn diseases, focus on areas where problems occur frequently and where the people have strong reactions, and clarify risk control points and control measures for important businesses. Strengthen the rigid control of key nodes of the system, strengthen system implementation and supervision and evaluation, and strengthen reputation risk management.

Focus on recent risk events, in-depth investigation of internal control defects, intensify daily inspections and inspections, strengthen management constraints on branches and business units, supervise and deal with repeated investigations and slow corrections, and rectify fictitious trade from the source Background, poor credit review and other stubborn diseases, effectively improve the level of risk management and control, and demonstrate the effectiveness of internal control and compliance management.


Pay close attention to personnel management and strengthen normalized abnormal behavior monitoring and investigation


Many banking institutions use intelligent and grid-based methods to strengthen the refined management of employee behavior. Since the beginning of this year, the coverage of employee grids, the performance rate of regular inspections, and the number of abnormalities recorded in inspections have all increased significantly.

However, the management effectiveness of key personnel in important positions in some banks is insufficient, and risk incidents of cases occur frequently.

All banking institutions shall further strengthen effective checks and balances on positions, standardize the management of incompatible positions, strictly implement regulatory requirements such as rotation of important positions, mandatory vacations, and avoidance of positions, and incorporate relevant implementation into the performance appraisal.

It is necessary to strengthen the management of employee labor contracts, and severely crack down on activities such as participating in private lending, illegal fund-raising, acting as a fund broker, and running a business.

It is necessary to improve the ability of monitoring and early warning of operational risks, grasp the early and catch the small, and prevent the slightest failure.

For key personnel in important positions, it is necessary to enrich the monitoring methods to establish a more stringent abnormal behavior investigation mechanism, to seriously deal with irregularities and illegal operations, and to enhance the risk awareness and awareness of the rules of the practitioners.


Strict internal accountability and effectively enhance the effect of punishment and deterrence


As the rectification of chaos in the banking market continues to deepen, the self-correction and accountability of banking institutions continue to increase.

However, at present, the internal accountability level of banks is generally low. In the centralized rectification of repeated investigations and repeated problems, some banks even have "zero accountability" for head office personnel.

All banking institutions must effectively reverse the current “relaxed and soft” situation of internal accountability, establish and improve the responsibility identification and accountability mechanism from the head office to the branch, and must not use exhortation talks, deduction of points, economic treatment, etc. to replace disciplinary actions. Make great efforts to solve the problems of "asking the next but not the upper" and "asking the front but not the after".

We must adhere to stricter standards and higher requirements for the rectification and accountability of repeated investigations.

If the supervisory department is ordered to be accountable internally, the directly responsible directors, senior management personnel and other directly responsible personnel shall be given disciplinary sanctions within the specified time.

For major credit risk incidents, major violations of laws and regulations, or dereliction of duty in major cases, the leadership and management responsibilities of the relevant personnel of the head office shall be strictly investigated.


Pay attention to the management of the general manager and improve the long-term mechanism of internal control and compliance


Since the start of market chaos rectification in 2017, banking institutions have revised 83,500 systems, improved 4766 systems, and carried out various educational activities such as case warnings, problem notifications, and compliance training. The industry culture of compliant and stable operation continues Thick planting.

However, the lack of internal control and compliance management resources, lack of independence, and lack of voice in the line still exist to varying degrees. Some banks have weak governance and control, and the performance of the "two sessions and one layer" is not sufficient. Some banks even failed to monitor and balance mechanisms and internal control. Compliance management is useless.

Banking institutions must deeply understand that sound compliance is the bottom-line requirement of commercial banks. They must continue to conduct self-inspection and self-correction and rectification of repeated investigations. They must be aware of outstanding issues and continue to track and correct them.

It is necessary to take this year’s construction year activities as an opportunity to “immediate now” to promote “long-term establishment”, highlight the proportion and positive incentives of internal control compliance factors in performance appraisal, and carry out normalized internal control inspections and internal control evaluations, so as to prevent Suffer before it happens.


pay attention to overall planning and implementation of policies, and make unremitting efforts to promote internal control and compliance management


Regulatory departments at all levels insist on strict investigation and punishment of violations of laws and regulations. Since 2017, the whole system has punished a total of 9,579 banking financial institutions, punished 12,200 persons responsible, and fined and confiscated a total of 10.436 billion yuan, which is more than the sum of the previous ten years. Promoting banking institutions to firmly establish the concept of "internal control first, compliance-oriented".

Regulatory departments at all levels should promote the construction of internal control and compliance management as an important starting point for deepening bank governance reform and enhancing risk prevention and control capabilities.

Supervise and urge banking institutions to implement the main responsibilities of internal control and compliance, and should strengthen supervision and inspections and supervise the investigation of problems that are too few in self-inspection by institutions, and supervise and investigate problems; for those with more problems, targeted guidance should be given to remedy defects and eliminate hidden risks , To ensure that no risk events that affect economic and social stability occur in the financial sector.

It is necessary to strengthen the thorough collaboration with the discipline inspection and supervision departments, promote the construction of a compliance culture and a clean financial culture together, and build a long-term mechanism that "does not dare to violate regulations, cannot violate regulations, and does not want to violate regulations" to provide strong financial support for building a new development pattern.