The Research On Internal Control Of Credit Business In Z Commercial Bank

With the continuous development of the global economy, the commercial bank, as a special economic entity, is playing an increasingly important role in the development of social economy. And at the same time, it also commits more and more responsibilities. Faced with numerous and complex external environment, as well as various kinds of business, the bank's management risk is becoming increasingly intensified. Credit business has always been an important business and the major resource of profit in commercial banks, whether its operation is safe or not is directly related to the safety and stability of the banking sector and the economic security of one region, even the whole nation. Looking back to the development of the banking sector, the failure of the control of credit risk always lead to very serious consequences, such as operating profit loss, bankrupt, etc. In the year of 2008, the U.S. subprime mortgage crisis not only hit the U.S. banking industry very hard, but also caused many well-known international banks closing down, and even spread to all walks of life around the world. This crisis sounded an alarm for the whole world, people are paying more attention to the importance of internal control of commercial bank's credit business. With the reform and opening up, the credit business of Chinese commercial banks has gradually developed, and it becomes the main capital source for the reproduction to meet the financing needs of the society. Its internal control rules and regulations are constantly being improved. However, there are still some imperfections in the credit business management, for example, the manual intervention in the process of handling credit business, the prevalent idea which emphasis on quantity rather than quality, the implementation of internal control mechanisms doesn't coordinate with its supervision, etc. Considering to the important position of credit business in economic development, the enhancement and the improvement of its internal control are very important and urgent. This thesis attempts to get the big picture from small details, focusing on the status quo of the management and internal control of credit business in Z commercial bank. Based on elaborating the theory of internal control of credit business in commercial bank, analyzing the credit business concept, characteristics and its internal control framework points, then analyzing the operation process of Z commercial bank credit business in order to figure out its existing internal control deficiencies. Hoping that throughout the discussion of this thesis, the internal control of Z commercial bank credit business can become much more complete and comprehensive to guard against potential risks. At the same time, I wish this thesis can provide advisory suggestions to the construction and improvement of internal controls of credit business in other banks.