A Bank's Internal Control System Analysis

To meet growing financial service needs, and to effective response to intense market competition, commercial banks continue to enrich their products, and to improve service levels. However, the complex product structure, increasing innovation, complex organizational structure, and the application of advanced scientific and techniques expose banks to unprecedented risks and cost management pressure. As an effective tool for risk control management, internal control system, the sound operation of the bank plays an important role. China's commercial banks are late started in building the internal control systems while enduring rapid development, which leads to many issues and the level of development needs to be improved.This dissertation is following a theory, practice, general, and individual research paradigm, argues from internal control theory to practice, internal control, internal control systems from general business to A bank-specific internal control system, summed up the general rules of the development of internal controls and our internal control over commercial banks development of special rules. Firstly, development laws and challenges of internal control system were discussed from a perspective of the evolution of internal control system theory evolve and practice. Secondly, an introduction on concerned factors posing impact on the internal control of Bank A was rolled out and analysis and research on its internal control system was conducted. Thirdly, Bank A's internal control system development obstacles and difficulties encountered were pointed out from the perspective of its internal and external aspects. Finally, specific methods on perfecting Bank A's internal control system were put forward from the perspectives of system development and business process, both macro and micro by aiming at Bank A's current operation in appliance of internal control development theory. This dissertation attempts to outline general process in evolution and laws of China's commercial banks by analyzing its internal control system so as to identify development difficulties, deficiencies and specific solutions of internal control system of China's commercial banks. It's prospected that this dissertation could enrich the theory of internal control system development, improve Bank A 's internal control system, improve the development of commercial bank internal control system.