An Analysis Of The Environmental Factors In The Internal Control Of China 's Commercial Banks

With the tightening of the merge of financial globalization, the connection of global finance market is stronger. While the influence of financial turbulence is wider at the same time, one area can be easily crash by another area’s finance crisis. People are more concerned about the stability of the commercial banks and theirs internal control, especially after the bank bankruptcy, like Lehman Brothers, and the worldwide depression after then. Making sure the finance safe is an urgent issue in nations, especially for the developing countries. After the reform and opening-up policy, there is a great development of China’s economy, and explosive growth is showed in the chinese commercial banks, which some became the top commercial bank in the world. But there are a lot of dangers in the dark among the excited increase, for instance, the incomplete corporate governance structure, overstaffing in organizations, unprofessional staff and so on.After China became the member of Basel Committee in June 2009, CBRC published tons of laws and regulations about internal control. Many commercial banks follow that to establish the internal control system and disclose related internal control information in their financial reports. But there is still great gap between the advanced internal control system. Nowadays, China’s market is open to the entire world, the chinese commercial banks force the challenge from the world, and that make it more pressing to develop a perfect internal control system. The chinese commercial banks can only find the defect and strengthening competitiveness by completing the internal control, and give full play to the economy.This thesis summarizes the theories of internal control, and looked up the laws and regulations of China. Base on that, it analyzes the current situation of chinese commercial banks’internal control, which emphasizes on the control environment problems and solutions to strengthen chinese commercial banks’internal control. The writer believes that the key of this issue is to build complete corporate governance structure, and to build the environment for internal control radically.