China's banking regulator has rolled out a regulation to assess the qualification of commercial banks' directors, requiring banks to promptly replace unqualified directors, the 21st Century Business Herald reported Tuesday.
The regulation, issued by the China Banking Regulatory Commission (CBRC), established the assessment and elimination mechanism for bank directors. It is the first such regulation by CBRC targeting individuals in company supervision.
Directors will be labeled qualified, basically qualified or unqualified. Basically qualified directors need to improve their performance within a set time if they want to maintain their positions.
The regulation also stipulates one person can not act concurrently as directors of competing banks. Currently, it is common for one person to serve as director of two or even more banks at the same time.
The CBRC will also release regulations on members of supervising committees and senior management in the future, the report said.
