Flattened Under The Management Of Commercial Bank Internal Control Management Mechanism To Explore

I. Thesis BackgroundIn the beginning of the 21st century, China's banking industry was aware of the drawbacks of its traditional organizitional structure.So, the banks in China started to reform their organizitional structure in succession initiated by the state-owned commercial banks. Aiming at reducing management procedures, improving operational efficiency and enhancing competitiveness, the flattening management structure broke the pyramid-shaped structure which existing in China's banking industry for more than ten years and established a brandnew mechanism which was centralized, efficient and close to market, which injected vigor and vitality to China's banking industry. However, due to the improperness of understanding, the inthoroughness of action and the invalidness of related supporting work, the reform of some banks was only formalistic and superfacial in the process of implementing flattening management. For these reasons mentioned above, the internal control management of the banks faced some new problems in the process of the reform of the organizitional structure. The frequently occurance of legal cases in banking systems and the increase of major legal cases brought great loss to the banking system. Thus, there was doubt about the flattening reform. Some people thought that the weakness of the internal control of the bank industry was caused by the flattening management style. So, after study, the author of this paper intends to discuss how to establish a management structure which has clear responsibility, effective check and balance, and coordinated operation; how to smooth the relationship between flattening management and internal control; how to establish internal control system under flattening management from the perspective of the flattening management of commercial banks.Ⅱ.Outline of this paperThere are five chapters in this paper. The first chapter introduces the theoretical foundation of the flattening reform and internal control management.The first section introduces the concept of flattening management and then concludes the advantage of flattening management and the enlightenment of the flattening management of foreign banks by comparason of the changes between before and after the reform of the organizational structure. Thus, it confirms the necessity of the flattening management of China's banking industry. The second section first introduces the concept of internal control management and the research about the internal control management of domestic and foreign banks and the difference in the internal control management between domestic and foreign banks from the perspective of the internal control of banks and then points out the importance of strenthening the internal control management of China's banks. The third section combines the flattening management and the internal control management closely and seeks the common ground and the difference between them, so as to find the entry point to solving the problem.The second chapter analyzes the current situation of the internal control of China's banking industry in the process of the flattening reform and the reasons exsiting in it.The third chapter probes into the problems existing in the internal control management under the flattening management concluded in the second chapter. It puts forward feasible solutions from the aspects of the banks'external part and the internal part, human resource management, the adjustment of the organizational structure and the transmission of information. The fourth chapter quests for the way to the flattening reform and the internal control management for urban commercial banks, taking Chongqing Bank for example. It first introduces the present situation of Chongqing Bank and analyzes the its organizational structure and then brings forward some plans and ideas for the timing of the flattening reform, the process of the flattening reform and the strenghtening of the internal control management for Chongqing Bank, which is an urban commercial bank.The fifth Chapter draws a conclusion:As an innovative way to organzational system, the flattening form is exerting great influence on the development of China's banking industry. To smooth the relationship between the flattening management and the internal control management of commercial banks, establish a reasonable internal control mechanism with effective check and balance and coordinated operation under the flattening management will lay a solid foundation for the healthy and orderly development of China's banking industry.Ⅲ.Innovation of this paper.Firstly, the flattening reform of China's commercial banks has been a hot topic of the academic circle. Choosing this topic, this paper not only follows up the report, but also proves the study of previous theoretical research. Secondly, discussions about the establishment of the corporate management structure with effective check and balance and coordinated operation and the establishment of related work mechanism and internal control system from practice enable this paper to be instructive in practice.Due to the limitation of the author, there must be some inadequateness and bias in this paper and critics and suggestions will be appreciated.