The Fuzzy Evaluation Of Corporate Loans Internal Control Of Commercial Banks

In 1997, the World Trade Organization reached a global financial service trade agreement. At the same time, we entered into the information era, which creates the liberalization, complex and international global economy. Commercial banks are an important part of the financial systems, which affect the stability of the entire international financial order. We want to ensure commercial banks'stable development only if we well evaluated corporate loans' internal control, which is the backbone of all of its businesses.There are five chapters in this paper:ChapterⅠsummarizes the domestic and foreign laws and regulations on internal control. The famous United States COSO report opened a new era in internal control research history, and it's a milestone event in internal control system. The "Enterprise Risk Management:Framework" established a comprehensive internal control risk management framework. China's "Internal Control Guidelines for Commercial Banks" and "Trial Measures for Commercial Banks Internal control Evaluation" indicate that our commercial banks internal control has made great progress. In academic research, the most important thing is Cushing and Meister who introduced the engineering reliability theory and mathematics knowledge into the commercial bank internal control theory.ChapterⅡintroduces the main theories of internal control. The evolution of internal control can be divided into internal check, internal control system, the internal control structure, the overall internal control framework and overall risk management. The internal control evaluation methods contain qualitative and quantitative methods, which separately include questionnaire, flow chart, auditor's subjective evaluation and AHP, the maximum deviation, fuzzy evaluation. Relatively speaking, the fuzzy evaluation method is the best one, whose evaluation process is not complicated and the evaluation result is an overall quantitative result.ChapterⅢdiscusses corporate loan's internal control. We collect the biggest six banks' data to highlight its importance. Next, we summary corporate loans' internal control system in detail, we divide the system into six major parts. We also analysis the mode of the credit approval, and we consider that the redundant components mode is more reliable than redundant channels mode. Through the analysis of people reliability, we realize that the credit committeeman should have high anti-interference ability and the ability to identify the error messages.ChapterⅣconstructs a fuzzy evaluation model; chapterⅤutilizes this model to evaluate corporate loans'internal control. This is the practical significance of this paper. Compared with other internal control evaluation methods, the fuzzy evaluation model, whose evaluation result is objective and more persuasive, gives us a quantitatively evaluation result about its process. The evaluation result of Z bank's corporate loan internal control is good. From the evaluation process, we can draw:the application of fuzzy evaluation model depends on each internal control factor's weighting assessment and evaluation result's maximum degree of subordination. The weights of the internal control factors are different, so the overall evaluation of internal control system should be some bias, in order to focus on the key areas.This article targets to corporate loan internal control, because of its importance in the commercial banks. We use the Z bank replace the realize bank in our life. Although these internal control factors' single evaluation result is also has some subjective components, its overall evaluation result is quantitative.