Research On Internal Control Of Commercial Banks In China

Due to the special character of the commercial bank business, this business contains extraordinary risk. In addition, due to the important position in the entire social economic system, any crisis or turbulence of a commercial bank could affect the stability of the individual country and even the international economy. In recent years, worldwide and regional finance affairs continue to erupt. Also in China finance affairs with criminal background happen frequently. This is often caused by too loose internal control measures. The Han Dan Agriculture Bank State Treasury Affair again shocked the banking community and also here the lack of internal control was shown to have been the biggest problem. Supervision authorities are concerned, whether the currently established internal control systems could stand the challenge.With the further development of the international financial market, the acceleration of economic globalization and promoted reform of the banking system, it is to be considered as an urgent matter to establish and optimize the internal control methods that efficiently prevent and mitigate risk in order to assure healthy, stable and continuous development of our commercial bank system.This thesis is taking the internal control mechanism as a study object. Following the development track of internal control theory, at first the concept of internal control and the controlling features are discussed; secondly the current situation of our commercial banks' internal control, its problems and the possible reasons are analyzed with two actual cases. Taking the advanced experience of foreign commercial banks' internal control management, in connection with internal control of our commercial bank the author puts forward strategic proposals.