Research On Internal Control Issues Of The Chinese State-owned Commercial Banks

The internal control development of the Chinese state-owned commercial banks (SOCBS) starts late. The SOCBS have taken several measures to perfect the rules and regulations of the internal control and to strengthen their capacity for internal control, however these years witness some serious finance criminals. The fact indicates that a large number of unsafe fact already exist in the SOCBS. The SOCBS have many problems in the internal control. For example, there is a Lack of a good control environment. Unified legal system is not sound. Accounting Information is distorted and so on.The existence of these problems has both internal and external reasons. Its source lies in their state-owned property rights system. The instance of financial property rights attaching to government leads to inadequate corporate governance structure, absent owners, the owner of offside, the imperfect internal mechanism and so on.In light of these problems, we should take measures from prevention in advance, control in the matter to supervision and inspection after implementation in order to improving internal control. For example, in order to resolve the problem, we should promote the reform of the property rights system and adopt joint-stock reform to state-owned commercial banks.In this paper, we first reviewed the general theory of the internal control of commercial banks, and then recalled the internal control building process of the Chinese state-owned commercial banks, and also to find the problems of internal controls. Next we analyze the causes of the failure of internal controls, and give advice to improve the Chinese state-owned commercial bank internal Control. At last, we analyze "Feng Mingchang case" to reflect the internal control problems of the Chinese state-owned commercial banks.