Internal Control Of Commercial Banks

After the background of the financial crisis, the global financial situation and the stability of the banking system is under challenge. As China’s economic and financial openness to further deepen the reform of commercial banks also then entered a crucial stage. Prevent risks to the world financial crisis has brought the heaviest financial sector most in need of the lessons of alert, as high debt high risk industry, China’s commercial banks not only face the onslaught of foreign commercial banks, but also the face of business between the domestic industry contention, it really can be described as intense competition, risk prevention are becoming increasingly important. Strengthen internal control is based on commercial bank risk prevention, especially for the higher degree of market Commercial Banks have a major significance. Therefore, the current internal control of Commercial Banks in China there are still many problems in the background, this paper by studying the causes of the problem and have an accurate grasp of the fundamental, and further construction of a realistic vision, to solve the problem of the effect.Before entering formal study in this paper, we first made the pragmatic necessity of the analysis:strengthening the internal control is the situation of China’s financial reform, the objective requirements of the Commercial Banks, the banks themselves are also listed business development, deal with the challenges of competition and inevitable choice. Internal control theory followed from the article on the general grasp of the commercial banks in particular that the special nature of internal controls and internal controls of the importance of Commercial Banks. By domestic and foreign commercial banks in the course of the internal control review of practices and comparative analysis of foreign commercial banks in the building on the success of internal control and exposed by the subprime mortgage crisis, an objective evaluation system of defects, both positive domestic banks internal control in progress and certainly the weak link, and the gap with foreign countries. China’s Commercial Banks of the status of the internal control are a key part of this article. Through research, found that the internal control of Commercial Banks in the system, there are many issues, such as accounting controls in place, weakening the implementation of rules and regulations, various criminal activities have occurred, but these problems are related to the internal representation of the building control system imperfections and the lag, lack of internal control culture, not tight organizational system of internal control and internal audit to play an effective role not really linked to underlying causes. Followed by China Merchants Bank as a case, the process of building its internal control affirmed the progress made, evaluate the situation objectively the problems, and analyze the causes of these problems. Finally, based on the status of China Merchants Bank demonstrated the internal control issues and causes, the article outlines the internal control system to further improve the concept of direction from the big new trend of development of internal control was to grasp, realize that building a sound internal control The importance of auditing and evaluation system, a series of targeted and specific implementation of practical suggestions.Therefore, this article focuses on the pragmatic nature of research on China’s Commercial Banks improve internal controls and the healthy and rapid development, and participation in international competition in domestic financial markets are an important reference and the reference value, while the more non-listed commercial banks can play a guiding and reference. Of course, since I work on finance-related lack of practical experience, but also makes the practical results of this study may be less than expected to need follow-up work and learning, further and improved.