Research On The Perfection Of Supervision On The Chinese Commercial Banks Compliance Risks

Financial industry is the core of modern economy system, therefore, it's been under the most strict supervision by relevant government agencies and institutions. Modern financial supervision is a mechanism composed by internal and external supervision. Internal control of commercial banks is a significant part of modern financial supervision system. With the rapid development of financial industry, the role of internal control of commercial banks has been ever-growing important. Supervision on the compliance risks is very important in supervising modern economic order. It can also been divided into two parts: external supervision and internal supervision on the compliance risks. Meanwhile, the latter one-internal supervision-plays a great part in the internal control system of commercial banks. An analysis on the problems and weakness existing in the internal and external supervision on the compliance risks among commercial banks would be beneficial to optimize the internal control mechanism in domestic commercial banks. Here are some suggestions about how to optimize internal supervision among commercial banks: establish an effective supervision system on violation risk control, a reasonable assessment and adjustment system, and a good enterprise culture on abiding by relevant regulations and rules; improve violation risk management skills by rebuilding producing and management chain and consolidating management and supervision to ensure performing according to the law. Again, I propose some advices on external supervision among domestic banks: coordinating the internal relationship among existing laws and regulations, accelerating the path in research in improving laws and policies on violation risk management and supervision.