Improving Disciplines and Intensifying Efforts to Defining Responsibilities

 

The Rules on the Punishment of Violations of Regulations by CCB Employees which was revised during the past half year has been distributed to CCB branches and will formally go into effect on September 1 of this year. As the internal “code”, the Punishment will help guard against the moral hazard of bank employees and increase their awareness of strictly following the operational standards and observing related laws and regulations.

As early as the beginning of 1998, CCB took the initiative within the Chinese banking system to formulate a fairly complete Interim Rules on the Punishment of Violations of Financial Rules and Regulations by the Employees which was revised in April 2004 and renamed as the Rules on the Punishment of Violations of Regulations by CCB Employees. Over the 6 years since its implementation, the Rules played an important role of strengthening internal control and preventing financial risks. Currently, as the shareholding reform moves ahead, CCB should further improve institutional disciplines, clearly define the responsibilities and punish those who are responsible and intensify the efforts to define the management responsibility of the managerial personnel at various levels to curb violations of regulations and disciplines, and that’s why CCB revised the Rules once more. 

The correspondent is informed that the major features of the revision of the CCB Rules include: first, new articles are added and some are revised or improved to intensify the supervision of the responsibility of managerial personnel at all levels. In particular, the managerial personnel who cause the asset risks and losses due to their neglect of duty must be held responsible; second, in response to strengthening internal control, standardizing management and stimulating business expansion, articles related with specific business and the management rules are moderately enriched and specified; third, articles on punishment of the violation of rules of the enforcement personnel are added to intensify management on the enforcement team; fourth, punishment procedures are readjusted and improved, principles which should be followed during the process and the coordination among the enforcement department and the enforcement supervision department, procedures to define responsibilities and the punishment procedures are clarified.