Risk management of foreign banks

With the continuous expansion of assets, business and outlets, in order to effectively solve the mismatch between business development and management capabilities, foreign banks began to move some credit approval and risk management functions from overseas to China, and some experienced senior managers and technicians were sent overseas to work in China. In particular, the restructured legal person gradually establishes and improves the corporate governance structure including the board of directors, relevant professional committees and senior management, and is relatively independent of overseas parent banks in strategic decision-making, budget management and risk control.

After the reorganization, the board of directors of CITIC Ka Wah Bank set up a credit risk management committee composed of directors of the parent bank, and sent senior risk managers from the parent bank to strengthen the risk management of subsidiaries. Due to the need of centralized risk management, domestic branches have been transformed into foreign-funded corporate banks, such as Mitsubishi UFJ Bank and Mizuho Industrial Bank, and the management of institutions in China has been greatly strengthened. After the reorganization, JPMorgan Chase appointed Chief Administrative Officer and Chief Operating Officer of Asia Pacific as non-executive directors and supervisors of the subsidiary board respectively, which improved the decision-making efficiency, and set up two risk control managers in the subsidiary to be responsible for the risk management of the subsidiary in terms of market risk, operational risk, outsourcing service management, information technology risk management and business disaster preparedness emergency plan management. After the reorganization of the Bank of East Asia, the China Strategy Department was established separately to formulate the development strategy of the Bank in China, which was submitted to the local board of directors for discussion and approval. The Strategy Department of the parent bank no longer formulated the development strategy of China.