State-owned Commercial Banks, Compliance Management

In October 2003, the Basel Committee issued a special compliance issues on Banking Supervision<Compliance department within the bank>, which means Compliance risk management is clearly an important and independent risk management function. This consultation paper has been the compliance risk management guidance document of banks in other country. China's banking and finance scholars began to research the compliance risk and compliance risk management at the same time. More and more banks crimes were exposed in 2005. It has exposed the compliance risk management weaknesses of the state-owned commercial banks. In October 2006, China Banking Regulatory Commission issued the<Commercial Bank Compliance Risk Management Practices>. The "Practices" require the commercial banks to improving compliance management system. For example, building a good compliance culture and building a compliance management system which is effective and rigorous. In September 2009, the fifth "Annual of Banking Compliance" was held in Shanghai, the CBRC Chairman Liu has pointed out that Compliance management is essential for the State-owned commercial banks, it is an important part of banking management.Therefore, Commercial banks are required to control the compliance risks, which is the basis for sustainable development of commercial banks.Now, banks have made compliance management and compliance provisions of the system, established corresponding compliance department. But studies of compliance management in China has just begun and in the backward status. Compliance management did not fully reflect the role, and the thorough and extensive study of compliance management still be needed. This paper aims at doing a research for the promotion of state-owned commercial banks compliance management.Compliance management in various state-owned commercial banks have different settings,, but the state-owned commercial banks of the compliance management also have their common features. Therefore, this paper tries to research the compliance management of Construction Bank of China to get its features, compared with the compliance management in other commercial banks and international banks, summarize the universal characteristics of compliance management of our state-owned commercial banks. Actually, discrepancy was due to lack a unified system and organization code. Researching into the universal characters will help state-owned commercial banks to integrate the compliance management.The research of the compliance management in our banking has made a rapid development, but many problems are not solved. Many banks compliance management is still difficult to obtain practical results. Based on our national conditions, combining the advanced foreign experience in research methods, this paper attempts to build up the framework of compliance risk management, establishing the organizational details of regulation on compliance risk management system, and internalize and sublimate compliance culture. Compliance management is supposed to develop further and exert greater influence.