Concretely, items related to legal compliance have been largely expanded in Section I (Management and Internal Controls) to include important points such as whether the management fully recognizes the importance of legal compliance and takes the lead in establishing compliance awareness within the financial institution, and whether there is a systematic framework with concrete procedures for implementing legal compliance and whether it functions adequately.
In its revision of Section I, the Bank considered and included the aims set forth in the “Framework for the Evaluation of the Internal Control Systems” released by the Basle Committee on Banking Supervision. In Section II (Lending Operations), a new item regarding financial institutions’ self-assessment of assets has been added in response to the introduction of the self-assessment system.