Research On The Appraisal System Of Credit Risk Internal Control System In The China Construction Bank Yi Yang Branch

As a effective way of perfecting credit risk management of commercial bank, evaluation of internal control in credit risk is playing an important role in bank management day by day, which is a crucial foundation of deciding the strategy to keep development of the bank .At present, most commercial banks in China mainly assess the internal control system basing on the auditing conclusions, which ignores the influences on the internal control system resulted from some non-audit indicators. Based on the above phenomena, by establishing a relatively scientific model of assessing the internal control of credit risk, this thesis studies the internal control of credit risk appraise system of the China Construction Bank (CCB for short), Yi yang Branch .Firstly this thesis overviews relevant theories of internal control appraise system at home and abroad, and analyzes the current situation of CCB Yi yang Branch. Then based on the theoretical research, it builds up an internal control of credit risk appraising indicators system and decides the weights of all the indicators by the Analytic Hierarchy Process , which refers to the appraise indicators in China Banking Regulatory Commission"the Trial Measures on evaluation of internal control of commercial bank", combines with the practical situation in CCB Yi yang Branch, and considers some suggestion of experienced experts in CCB. Fuzzy appraisal system (FAS for short) mathematic model assesses the internal control system of credit risk in CCB Yi yang Branch by means of fuzzy appraisal on secondary degree model and first degree model. The result of the demonstration shows that: the"actual control result"option is most satisfactory, the"after loan management and supervision"is less satisfactory; the"risk control and evaluation"option is most unsatisfactory; there are great diversions between"control environment"and"information management".We can find some quite pertinent conclusions, many of which we could hardly get from other appraise methods. Also it means that it is very feasible to apply fuzzy appraisal system to internal control of credit risk and it can improve the internal control in accuracy and in all sides, realize a self-assess of bank and improve the development and management of the bank, which is for the purpose of strengthening internal control efficiency radically and providing a more effective idea to advance the credit assets quality. At last, this thesis aims at the weak points discovered during the appraise process of internal control system in CCB Yi yang Branch, and proposes some solutions and suggestion to improve the internal control system of credit risk in CCB Yi yang Branch in order to perfect the self-regulating mechanism and promote persistent business.