Research Report on the Corporate Governance Practices of China’s Six Largest Commercial Banks 2019

Deloitte China released the Research Report on the Corporate Governance Practices of China’s Six Largest Commercial Banks 2019 (the Report). The project was moderated by Chen Caihong, a distinguished professor of Zhongnan University of Economics and Law, also the former board secretary of China Construction Bank, with the joint efforts of experts and scholars from the International Finance Corporation (IFC) of the World Bank Group and the Corporate Governance Research Center of Deloitte China.

The Report reviewed and summarized the achievements of China’s six largest commercial banks (Industrial and Commercial Bank of China (ICBC), Agricultural Bank of China (ABC), Bank of China (BOC), China Construction Bank (CCB), Bank of Communications (BOCOM), and Postal Savings Bank of China (PSBC)) in corporate governance. The Report came up with a relatively objective research conclusion based on the in-depth analysis from six aspects:

• The new practice of “Four Meetings and One Management” governance structure comprised of Party committee, shareholders’ general meeting, board of directors, board of supervisors and senior management;
• Directors’ competencies;
• Role of state shareholders;
• Remuneration to directors and executives;
• Communication with stakeholders;
• External and internal audits.

Then the Report proposed some suggestions to improve corporate governance and provided reference for the parties involved in corporate governance including regulatory authorities, shareholders and directors.