Four, the role of the People's Bank of China in the supervision of social security funds.

(1) Examining the qualifications and credit standing of the custodian.

Compared with other fund businesses of banks, maintaining the neutrality and integrity of banks in custody business is a very prominent feature. This requires commercial banks to adjust their business management, design a business management framework and business processing model that conforms to the development direction of the fund industry, and design a business model that always puts the interests of investors first.

(2) Supervising the risk management and internal control of the custodian bank.

Custody banks mainly face the following risks in custody business:

(1) Credit risk, mainly the counterparty default risk in custody business;

(2) operational risk; Risks caused by operational errors or mechanical failures;

(3) Liquidation risk, etc.

(3) Conduct on-site inspection and off-site supervision on the custodian banks, and conduct annual evaluation on their custody business, so as to promote the custodian banks to strengthen internal control, improve the risk management level, meet the requirements of the custodian banks, and promote the steady development of China's capital market.