In light of the international advanced banking practices, China Banking Regulatory Commission (CBRC) formulated and issued Commercial Bank Risk Early Warning Operation Guide (Trial Version) in accordance with the actual condition of the commercial banks in China, and will implement the commercial bank risk early warning system within the banking regulatory departments.

Through continuous observation over various early warning indexes of individual commercial bank, the relevant departments under CBRC inputs the data collected so far into models, calculates its comprehensive risk indexes and gets the corresponding early warning signals. Based on that system, the commercial bank risk early warning mechanism is divided into four kinds, namely, normal signal, blue early warning signal, orange early warning signal as well as red early warning signal.

By People's Daily Online