Article 1 In order to improve the quality and effectiveness of corporate governance of banking and insurance institutions, these Standards are formulated in accordance with the Company Law of People's Republic of China (PRC), the Commercial Bank Law of People's Republic of China (PRC), the Banking Supervision Law of the People's Republic of China, the Insurance Law of People's Republic of China (PRC) and other relevant laws and regulations.
Article 2 The bank insurance institutions mentioned in these Standards refer to commercial banks and insurance companies in the form of joint stock limited companies established in People's Republic of China (PRC) according to law.
Article 3 A bank insurance institution shall, in accordance with the Company Law, these Standards and other laws, regulations and regulatory provisions, establish a corporate governance structure including the shareholders' meeting, the board of directors, the board of supervisors, the senior management and other governance bodies, clarify the responsibility boundaries and performance requirements of each governance body, improve the risk management and control, check and balance supervision and incentive and restraint mechanisms, and continuously improve the corporate governance level.
Article 4 Banking and insurance institutions shall continuously improve the level of corporate governance and gradually reach good corporate governance standards.
Good corporate governance includes but is not limited to the following:
(1) Clear ownership structure;
(2) A sound organizational structure;
(3) Defining the boundaries of responsibilities;
(4) Scientific development strategy;
(5) High professional ethics;
(6) Effective risk management and internal control.