Font Size: a A A

Commercial Banks Internal Control Effectiveness Research

Posted on:2013-11-09Degree:MasterType:Thesis
Country:ChinaCandidate:T ChenFull Text:PDF
GTID:2249330395490461Subject:Technical Economics and Management
Abstract/Summary:PDF Full Text Request
In recent years, the trend of financial globalization is increasingly evident; the financial crisis has not dissipated; the complex and ever-changing pattern has been showed by domestic and international financial environment. Prudent operation of the commercial banks, not only related to the commercial bank’s own stability and development, and is closely related with the stability of the national and international economic order. In the environment of this complex and changing financial landscape, the effectiveness of internal control of commercial banks must be guaranteed. China’s Commercial Bank has established a sound internal control system, while the branch in charge of specific business and the pursuit of growth, eager to expand the scale of the branches, the effectiveness of internal control can not be guaranteed, thus brings a lot of risk. Firstly, Internal control questionnaire is to design on the basis of literature research, combination of pre-survey results, with the characteristics of commercial bank branches in Yang Zhou, the issues and options will be adjusted. Main factor extracted by principal component analysis of internal control of commercial banks, to rank the effectiveness of internal control in banks; the final fuzzy evaluation method is to draw the value of the composite score and ranking of the banks.Through the empirical analysis, at the element level, the five elements of internal control compared by the effectiveness, the internal control environment and monitoring and evaluation elements are low, the effectiveness of internal control activities and exchange of information and communication factors are higher. Found at the bank level, the effectiveness of internal control culture is low, relative to its asset size, part of the bank’s internal audit staff members are under standard; risk quantification methods are far behind, lacking of risk management personnel; credit control is lax, the communication of information of the state-owned banks is poor, and the effectiveness of the information systems of small and medium-sized banks is low; the supervision and assessment methods are behind; the accountability system is not implemented.Finally, based on empirical analysis conclusions, The paper is to put forward countermeasures and suggestions to enhance the effectiveness of internal control of commercial banks:Building a good internal control environment, focusing on the training of audit staff; sound risk assessment system, the establishment of a comprehensive risk management system; to increase the intensity of the implementation of control measures and the accountability system; to improve the exchange of information and communication mechanisms, the information system, the monitoring and evaluation mechanisms.
Keywords/Search Tags:commercial banks, branches, internal control, effectiveness
PDF Full Text Request
Related items