Research On Internal Control Of NH Agricultural Bank

NH branch of Agricultural Bank was set up in 1997. It is a financial institution which mainly severs for'the three rural issues', promotes the linkage between urban and countryside, emphasizes the integration into international system and comprehensive management. As the delegate of advanced branches, The NH branch of Agricultural Bank is always upholding the spirit of benefiting and enriching people and the'three rural issues'. It launches a series of new policies, measures and products which are mainly focus on satisfying the financial needs of the'three rural issues'. By the end of 2009, NH Agricultural Bank has been issuing Huinong loan business card for more than 3,300 families in countryside and benefiting up to hundreds of millions of farmers. But NH branch, however, is suffering from a large amount of nonperforming loans because of the increasing costs. It also represents NH Agricultural Bank has to finally take a tremendous risk of capital loss.The risk of our banking industry, especially for those which are state-owned, is increasing with the deepening of financial reform. The insecurity factors within the industry expose a series of internal control mechanism defects. For NH branch, this means more risk and broader harm. Along with the progress of community and the development of economy, NH branch of Agriculture Bank has developed into an organic system which is huge and has a complicated construction. Diversified businesses put forward higher requirements for the administration and operation of NH branch. At present, most banks are facing the problems of imperfect internal control mechanism and insufficient execution, and these problems has significantly weakened the core competence of organizations and brought tremendous business risk. Thus, the internal control mechanism has become an essential factor for the prudent operation of commercial banks.This thesis mainly adopts an approach combining theoretical and empirical analysis. Researcher will focus on the existing problems within the internal control of monetary fund in Agricultural Bank NH branch. According to the modern commercial bank internal control and the monetary fund operation theories, combining practical experience, researcher tries to discover the new measures and approaches which could effectively solve the problems of internal monetary control in NH branch. The whole thesis falls into five chapters:Chapter one is the introduction. The first part introduces the background, significance, basic methods and construction of the research.Chapter two is the literature review, which introduces the five development stages of internal control theories and domestic literature about internal monetary control.Chapter three reviews the internal monetary control mechanism of Agricultural Bank NH branch and analyses the existing problems.Based on five essentials of COSO report, Chapter four provides a series of effective measures and approaches according to the existing problems of internal monetary control mechanism in Agricultural Bank NH branch.The conclusion which summarizes all theories and case studies appeared in this thesis.