CHINA China releases revised performance evaluation rules for commercial banks

CHINA

China releases revised performance evaluation rules for commercial banks

Xinhua

15:25, January 05, 2021

BEIJING, Jan. 5 (Xinhua) -- China's Ministry of Finance has issued revised performance evaluation rules for commercial banks.

The Chinese national flag (centre R) and the Hong Kong flag are seen hoisted on poles outside the Court of Final Appeal in front of a view of (L-R) the Bank of China (Hong Kong), or BOCHK, building, The Cheung Kong building and the local HSBC headquarters building in Hong Kong on July 16, 2020. (Photo: AFP)

Starting from Jan. 1, the revised rules introduced a new performance evaluation mechanism focusing on commercial banks' contribution to national development and the real economy, quality of development, risk prevention and control and operational efficiency.

The proportion of the four indicators in the mechanism may be adjusted appropriately according to the macro-economic policy and development of the real economy and financial sectors, according to the rules.

The revision aims to incentivize commercial banks to better implement macro-economic policy and serve the real economy, as well as support their steady operation and high-quality development.

As part of the country's performance evaluation system for financial companies, the rules for commercial banks were initiated in 2009 and previously revised in 2016.

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