The Improvement Of China's Commercial Banks Internal Control System In The Background Of The Financial Crisis

So far in 2007 the subprime crisis has destroyed the financial system of the Wall Street and resulted in a series of worldwide banking crisis.According to the IMF definition of bank failure is a necessary condition for banking crises,so to prevent bank failures is to prevent the banking crisis as well as the financial crisis. After 1980s,Bank failures are mainly caused by its internal control system failure. According to Chinese law,the internal control of commercial banks is a dynamic process and mechanism,in which,in order to achieve operational objectives, commercial banks could control,monitor and correct after risk through the development and implementation of a series of systems.It has been nearly two years since the outbreak of the subprime mortgage crisis in the United States;but the global financial turmoil Caused by subprime mortgage crisis are still impacting on economic of the world.It is more urgent to improve China's commercial banks internal control system,facing the new economic situation.This paper outlines the development of control theory,researches the latest developments in the internal controls of foreign commercial banks and flaws exposed by subprime mortgage crisis,analysis of the impact of the financial crisis on China's banking industry.In the last section,this essay,taking China Construction Bank for Example,uses qualitative and quantitative methods to analysis of the status of its internal controls,establishes a comprehensive evaluation model for bank internal control system by the fuzzy comprehensive evaluation method,evaluates the situation of Construction Bank internal control, and makes several recommendations to deal with the financial crisis.