China Banking Regulatory Commission, Guidelines for the Regulation of Performance Evaluation of Financial Institutions in the Banking Sector

The Guidelines apply to financial asset management companies, trust companies, finance companies, lease-financing companies and urban credit cooperatives established within the People's Republic of China in accordance with the law as well as other financial institutions established with the approval of the China Banking Regulatory Commission. Policy banks and commercial banks that implement management by business lines shall, mutatis mutandis, be governed by the Guidelines (Article 2).

The term “performance evaluation” refers to the process whereby financial institutions in the banking sector conduct comprehensive assessment of business performance, risk status and internal controls during a specific time period, through the establishment of evaluation indexes and the setting of evaluation standards, on the subjects of evaluation for implementing regulatory requirements and their own development strategies, and improve business management based on the evaluation results (Article 3).

Main contents: The performance evaluation indexes of financial institutions in the banking sector consist of five main categories: compliant operation, risk management, operation effectiveness, transformation of development and social responsibility (Article 5).