The China Banking Regulatory Commission (CBRC) will make greater efforts to promote internal controls in the country's commercial banks, said a senior CBRC official Beijing Thursday.

Sound internal controls were the prerequisite for trust worthy management, as well as the base for financial stability, said Tang Shuangning, vice-chairman of the CBRC, at a forum in Beijing.

He said the CBRC had set clear requirements for the Bank of China and the China Construction Bank, the two pilot banks ordered by the State Council to introduce joint-stock systems, to carry out reforms of corporate governance.

The two banks should establish standardized systems of shareholder meetings, boards of directors and boards of supervisors, introduce overseas and domestic strategic investors and set clear development strategies, Tang said.

They should establish a scientific decision-making system and a complete risk control system optimize their structures and set up a cautious accounting and financial system and a transparent system of information release.

He urged commercial banks to find problems and risks instead of hiding them, and actively promote internal control.

The CBRC would perform its duties according to the law to create conditions for commercial banks to upgrade internal controls and enhance their abilities to mitigate risks, said the official.
 
(Xinhua News Agency January 9, 2004)