The China Banking Regulatory Commission (CBRC) has issued a circular urging all banks in the country to exert greater efforts and adopt substantial measures to prevent and control risks, efficiently.
According to a CBRC release Sunday, some banks have encountered frequent and major fraudulent cases, causing huge losses, due to the lack of supervision, failure in punishing malfeasant activities, weakness in risk and internal control. Leading management staff and those who are held responsible must be dealt with and punished, it says.
The public should be given access to reports about the occurrence of these cases, according to the circular, which offers 13 instructions concerning the management and risk control of banks.
On the same day, Xinhua also published an exclusive interview with a spokesman of the CBRC, who said the 13 instructions are based on a survey among banks conducted by the People's Bank of China (PBOC), the central bank.
The spokesman expressed his hopes that the circular would help the CBRC play its supervisory role in accordance with international practice, so as to prevent the occurrence of major fraudulent activities involving banks.
(Xinhua News Agency March 28, 2005)
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