Research On The Current Condition, Problems And Corresponding Suggestions Of Internal Control Of The State-owned Commercial Banks

Internal control is a dynamic process and mechanism designed by commercial bank to supervising, controlling and correcting risk by establishing a series of rules, procedure and methods, in order to achieve its goal. As one of the most direct and most effective risk prevention mechanisms, internal control is essential to increasing commercial bank's core competitiveness, maintaining bank system's stable operation.In recent years, the state-owned commerical banks of our country(SOCBS)have taken several measures to perfect the rules and regulations of the internal control and to strengthen their capacity for internal control, but financial cases and important cases still occur. The fact indicates that the commercial banks'internal control and risk management are still weak and a large number of unsafefactors already exist, which can threat the stability of the bank system and even the whole financial system and economic order of our country. So, making scientific researches on the internal control of the SOCBS and analyzing the underlying causes deeply has extremely important realistic significance to the SOCBS and the china's banks.This study guided by economic, auditing as well as monetary banking theories and methods, taking in the latest reseaches and achievement of internal control from domestic and foreign, and adopting the methods of substantialanalysis and summary analysis. The study took the way of the current condition, problems and corresponding suggestions as the master line. On the basis of the five elements of internal control system, the study discussed the present condition of the internal control system of the state-owned commerical banks, described the existence problems and comprehensively analysed the internal causes that induced the problems. Finally, learning from internal control of the Citibank,the HSBC bank and the Deutsche Bank, the study put forward the corresponding suggestion to perfect the internal control in the SOCBS.This study has shown that a perfect internal control system can be fully effective in a favorable financial ecology environment. Therefore, to strengthen internal control, not only do we need to promote the construction of the internal control system, but also optimize financial ecology environment in an all-round way. Only by creating good financial ecology environment and setting up thevalid mechanism of internal control, can the state-owned commercial banks carry out the purpose of improving internal control effects, strengthing the power of withstanding risk as well as enhancing their market competition ability.