Data provisioning norms for banks tightened

China's banking and insurance regulator issued guidelines on Monday that stipulate higher data governance requirements for banking institutions.

The regulations follow rules announced by the China Banking and Insurance Regulatory Commission earlier governing various aspects of banking, ranging from equity management for commercial banks to the management of entrusted loans.

Under the new rules, banking institutions will need to build a top-down and coordinated system for data governance. While the board of directors of banking institutions should make a data strategy, senior executives will be responsible for building a data governance system, a mechanism for data quality control, as well as incentive and accountability mechanisms.