BEIJING, Nov. 12 (Xinhua) -- China's small and medium-sized banks should strive to improve their governance capabilities, said Zhang Liang, deputy secretary-general of the China Banking Association (CBA) in the 15th 21st Century Annual Finance Summit of Asia on Wednesday.
According to Zhang, small and medium-sized banks should strengthen equity management. Under the premise of long-term stability, transparency, integrity, fairness and rationality, equity structure with banks' own distinctive features should be established. It is necessary to improve the governance structure and realize efficient performance of duties.
Zhang highlighted that small and medium-sized banks should also improve their risk control capability. This year, affected by the COVID-19 pandemic, banks have been under the pressure of credit risks. Hence, efforts should be made to enhance their dynamic monitoring and real-time early warning capability, formulate practical profit plans, classify assets in a strict way, and accelerate the disposal of non-performing assets, in a bid to prevent small risks from evolving to large risks.
In addition, China's small and medium-sized banks should try to improve their fintech capability, develop online lending in compliance with regulations, upgrade technology risk management, and deal with the challenges from operation and maintenance security, network security, data security and privacy security in a cautious manner, stressed Zhang. (Edited by Zhang Yuan with Xinhua Silk Road, zhangyuan11@xinhua.org)
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