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]