CHENGDU, Jan. 6 (NBD) -- The China Banking Regulatory Commission (CBRC) will tighten the supervision over private banks to ensure their legal operation and stable development, according to the authority's newly issued guideline for the supervision of private banks.  

The document places an emphasis on prudential supervision and innovative development. 

Local banking regulators are required to enhance prudential supervision, fulfill responsibilities, and work with local governments to establish coordination mechanism to effectively prevent risks. 

Private banks are urged to insist on distinctive operation and promote innovations relating to business, services, working flow, and management.