Responsibilities of the Supervisory Board of Commercial Banks

The responsibilities of the supervisory board of a commercial bank include: making written or oral suggestions to the board of directors and senior management and their members or other personnel, making reminders, interviews, questioning and requesting responses. Supervisors may attend board meetings, Special committee meetings of the board of directors and senior management meetings, and have the right to raise questions or suggestions on matters resolved at the meetings.

A commercial bank shall inform the board of supervisors in advance of major decision-making matters, and provide the board of supervisors with operating status, financial status, important contracts, major events and cases, audit matters, major personnel changes, and other information required by the board of supervisors. In the process of performing its duties, the board of supervisors can use various methods such as off-site monitoring, inspection, attending meetings, interviews, review reports, surveys, questionnaires, outgoing audits and hiring third-party professional institutions to provide assistance.

The board of supervisors has the right to use all operational and management information systems of the commercial bank as necessary to perform its duties. The supervisory board should have an independent expense budget. The Board of Supervisors has the right to independently allocate budget expenses based on work needs. The expenses for the supervisory board to exercise its powers shall be borne by the commercial bank.

Extended information

Shareholder supervisors are nominated by the board of supervisors and shareholders who individually or collectively hold more than 3% of the voting shares of the commercial bank. External supervisors are nominated by the board of supervisors and shareholders who individually or collectively hold more than 1% of the voting shares of the commercial bank. Employee supervisors are nominated by the board of supervisors and the commercial bank trade union.

In principle, the number of supervisors nominated by the same shareholder and its affiliates should not exceed one-third of the total number of members of the supervisory board. In principle, the same shareholder can only nominate one external supervisor candidate and should not nominate both independent director candidates and external supervisor candidates. If exemption is needed due to special equity structure, an application should be made to the regulatory agency and the reasons should be explained.

Baidu Encyclopedia—Commercial Bank Supervisory Board