China Banking Regulatory Commission, Guidelines on the Internal Controls of Commercial Banks (Draft for Comments on Amendments)

Issued: May 20 2014

Main contents: The Guidelines require commercial banks to conduct assessments of the internal controls of institutions subject to consolidated management, including a commercial bank's head office, its (sub-)branches inside and outside China and subsidiaries. When a commercial bank is involved in a material acquisition or disposal, a material change in its mode of operations is made or a material change in its external operating environment occurs, it is required to arrange for the conduct of an assessment of its internal controls in a timely manner. The Guidelines suggest that the results of such an assessment serve as a key basis for evaluating the performance of the leadership team of the assessed institution.