On 26 Jan. 2022, China Banking and Insurance Regulatory Commission (CBIRC) issued the “Guidance on Digital Transformation of Banking and Insurance Industries” (hereinafter “the Guidance”, 关于银行业保险业数字化转型的指导意见), emphasizing that banking and insurance institutions need to develop industrial digital finance and comprehensively promote digitalized operating and management systems.
The Guidance points out that:
- Financial institutions are encouraged to recruit professionals with the technological background to the board of directors or senior management;
- Financial institutions are required to build enterprise-level risk management platforms to achieve centralized and unified management of rules strategies and model algorithms;
- Financial institutions are required to improve their data governance systems so as to realize systematic, automated, and intelligent data governance;
- Financial institutions are required to establish a comprehensive management framework for model and algorithmic risk; and,
- Financial institutions should enhance data security, improve privacy protection and strengthen security access control over data.
Cover Photo by Tao Yuan on Unsplash
Contributors: CJO Staff Contributors Team
