1. The FEB’s on-site examinations include full-scope examinations and targeted examinations. The full-scope examinations are sampling examinations of finance and business, corporate governance, consumer protection, internal control and internal audit functions of financial institutions. Otherwise, targeted examinations focus on specific financial institutions, business or activities.

2. To promote the effectiveness of financial examinations, the FEB has adopted the differential examination mechanism, which assigns different risk grades for those institutions, to implement the risk-based examinations and help institutions establish efficient risk management and internal audit mechanism. The FEB lists examination findings and completes examination reports where an examination reveals shortcomings to require financial institutions to make improvements. In addition, the FEB also follows up and reviews institutions’ improvements to enhance their business soundness.