Integrated Research On Internal Control Of Chinese State-owned Commercial Bank

With the development of the real economy, the financial sector flourishes and becomes the dominant part of the national economy. As the oldest and most central component of economic development, banking sector plays important roles both in economy and people's lives. As the main force of China's banking industry, state-owned banks are the apples of the eyes of banking in China. But for a long time, the internal control system brings a lot trouble to our state-owned banks, and we just concentrate on the changes of system rather than concept, just on institution building rather than implementation, such are the superficial measures and result in more and more failures in internal control.Surrounding the topic tightly, this article analyses and summaries the development of the commercial bank's internal control from both sides of the theories and practice, this article first introduces the system of internal control over domestic and foreign commercial banks in the theory and practice。Foreign commercial bank's internal control theory development process is divided into five stages:the theory of internal control to contain the internal system of control theory, the internal control structure theory, the internal control system theory, and comprehensive framework for the evolution of the overall risk level. Domestic commercial banks in the development of internal control is divided into four phases:exploration of the internal control system, the initial stage, the internal control system, the initial construction stage, the internal control system achieved initial success and rapid development stage, comprehensive risk management-oriented internal control system to start with and gradually perfecting stage. The field through a system of internal control at home and abroad combing summed up the development of internal control status and trends; in the second chapter we continue to explore domestic and international representative of the internal control of several research:COSO-IC, ERM and the "Internal Control basic norms, "and a comparative analysis of the three. In chapterⅢ, the combination of COSO report and the "basic norms of internal control" on Shuangyashan branch of the Bank of China case study reveals the current stage of China's state-owned commercial bank's internal control environment, building defects and the initial proposal of building a state-owned bank's internal control environment, an important measure to pave the way for further elaboration below. Based in accordance with China's "basic norms of internal control" system, ChapterⅣcomes up with concrete measures and steps to build brand new internal control system. In ChapterⅤ, we come to the conclusion on the building of internal control system.Main research results and innovations:1. In this paper, I view the internal control system of state-owned bank through the eyes of management, and we use lots of management tools, such as Management by object, KPI, balanced score card, to solve the problem.2. I come up with the dual supervision structure creatively to deal with the unique problems in China.3. Balanced score card is introduced to solve the performance evaluation problem.4. I study the sensational cases in recent years to sum up the defect of internal control, and come up with my solutions.