Bank of Chongqing Co., Ltd. (BCQ) released its 2026 Terms of Reference for the Board’s Audit Committee, detailing an expanded governance framework aimed at reinforcing financial oversight, audit quality, and internal control supervision.

Key structural provisions • Composition: The committee will consist of three to five directors, with independent directors forming the majority. At least one independent director must possess professional accounting or financial management expertise. • Leadership: An independent director with accounting credentials will serve as chairman and must work on-site at least 20 days per year. • Tenure: Members serve three-year terms, renewable once; independent directors are capped at six consecutive years.

Enhanced authority and responsibilities • Financial supervision: The committee must review all periodic financial statements, focusing on policy changes, significant estimates, audit adjustments, going-concern assumptions and compliance with disclosure standards. • Audit oversight: Responsibilities include proposing the appointment or replacement of external auditors, setting audit fees, monitoring auditor independence, and coordinating internal and external audit activities. Annual performance evaluations of external auditors are mandatory. • Internal audit & control: The committee will vet annual internal-audit plans, track implementation, review key findings and ensure adequate resourcing. It must issue written evaluations of internal-control effectiveness. • Supervisory powers: In line with China’s Company Law, the committee inherits Board of Supervisors’ rights to examine finances, supervise directors and senior management, demand rectification of misconduct, and initiate legal proceedings on the bank’s behalf. It may also convene extraordinary shareholder or board meetings if necessary.

Operational mechanics • Meetings: At least one quarterly meeting, with on-site sessions no fewer than twice annually; extraordinary meetings can be called by the chair or two members. A two-thirds attendance quorum applies, and significant matters require a two-thirds affirmative vote. • Confidentiality & independence: Members must recuse themselves from matters involving conflicts of interest, maintain strict confidentiality, and refrain from accepting benefits from the bank. Violations can lead to dismissal and legal action. • Support: BCQ will allocate adequate resources, and relevant departments—especially finance and internal audit—must cooperate fully.

Implementation The new Terms of Reference take effect upon board approval, simultaneously repealing the 2019 version. The updated charter is designed to align BCQ’s governance with Chinese corporate law, banking regulations, and state-owned enterprise guidelines, reinforcing stakeholder confidence in the bank’s risk management and financial reporting processes.