Group 1: Core Insights - The external environment for commercial banks is increasingly complex, with geopolitical tensions, technological revolutions, and deepening regulations posing new challenges to strategic resilience and governance capabilities [2][35] - The board of directors is crucial in leading banks to proactively transform and adapt to changes, shifting from passive defense to active positioning and from compliance to value creation [2][35] Group 2: Organizational Structure - Digital technologies such as AI, big data, and blockchain are reshaping the financial landscape, pushing banks towards intelligent, inclusive, and globalized operations [3][36] - The article discusses the need for banks to reassess their organizational structures to adapt to the competitive environment of the digital age, focusing on how to break down departmental silos and enhance strategic collaboration [3][37] Group 3: Business Development - The banking industry is experiencing a significant shift from a "scale-oriented" approach to "value reconstruction," driven by narrowing net interest margins and intense competition [8][42] - The article outlines how banks can leverage dual forces of financial digital ecosystems and industry terminal scenarios to drive transformation, providing actionable business layout and innovation directions [8][42] Group 4: Risk Management - Commercial banks are facing a new normal where external risks outweigh internal risks, necessitating a shift from traditional passive risk management to a more proactive and systematic risk governance model [15][49] - The article emphasizes the importance of integrating strategic execution with risk appetite to ensure banks maintain the correct direction in dynamic environments [15][49] Group 5: Compliance Management - Compliance management has evolved from merely meeting regulatory requirements to becoming a core competitive advantage that supports long-term value growth [21][55] - The article provides a framework for compliance transformation, emphasizing the need for boards to lead the redefinition of compliance functions to adapt to changing environments [21][56] Group 6: Internal Audit - Traditional internal audit models are challenged by rapid technological advancements and regulatory changes, necessitating a shift towards agile auditing that provides real-time insights and strategic support [28][62] - The article outlines how agile auditing can transform internal audit functions from compliance overseers to strategic partners that enhance risk management and value creation [28][62]

Investment Rating - The report does not explicitly provide an investment rating for the banking industry Core Insights - The report highlights the ongoing regulatory changes and their implications for internal auditing within commercial banks, emphasizing the need for compliance and risk management in light of new regulations [4][7] Regulatory Rule Tracking - In the first half of 2025, various regulatory bodies issued 154 important new regulations and consultation drafts affecting multiple areas including economic promotion, capital markets, and risk management [9] - Key areas of focus for internal audits include governance, market risk management, and green finance initiatives [10][11] Regulatory Penalty Insights - In the first half of 2025, regulatory penalties remained stringent, with 2,257 fines totaling RMB 665 million, indicating a continued trend of strict oversight [39][40] - The majority of penalties were concentrated in credit business, internal control compliance, and agency business [41] Agile Auditing Topics - The report suggests that internal audits should adapt to recent market risk hotspots and provide practical recommendations for agile auditing practices [7] Internal Audit Theory Dynamics - The report tracks developments in internal audit theories both domestically and internationally, sharing insights on methodologies and areas of focus [7] Internal Audit International Dynamics - The report provides insights into the best practices and developments in internal auditing from leading international commercial banks [7] Key Regulatory Changes - The new regulations emphasize the importance of internal controls, consumer protection, and compliance in agency sales, particularly in the context of asset management products [16][17] - The updated "Commercial Bank Agency Sales Business Management Measures" will take effect on October 1, 2025, requiring banks to enhance their management and compliance frameworks [16][17] Recommendations for Internal Audit - Internal audits should focus on the implementation of new regulatory requirements, particularly in areas such as consumer protection, product management, and sales practices [21][34] - The report emphasizes the need for banks to establish robust mechanisms for monitoring compliance with new regulations and managing risks associated with agency sales [21][34]