City Commercial Banks Internal Control Research In China Based On Qilu Bank Case

In recent years, with China’s financial reform deepening and bank competitionincreasingly, strengthen internal control and risk management has become an importantissue currently in the development of China’s commercial banks. Along with the furtheropen of our country financial industry, City commercial Banks have been as an importantforce to promote the development of local economy. However, influenced by its ownspecial properties and governance structure, management system and other factors, thepromotion of the internal control in City commercial Banks can’t keep up with the speed ofscale expansion, lead to increase the potential risk, direct threat to the stability of ourfinancial order and the safety of the banking system. Therefore, building standards,effective internal control system has become the key to survive and develop in current Citycommercial Banks in China.This article takes the Qilu Bank case as the study of case, which aims to study thewhole construction of internal control in our City commercial Banks. Firstly, in this paper,we introduced the basic situation of the case mainly from industry background and the caseprocess. Then, by means of the vulnerability in risk management of this Qilu Bank case,we analyze the problem in internal control construction of our City commercial Banksfrom the internal and external factors. In terms of internal reasons, we begin to analyzefrom five elements of internal control. External causes mainly elaborate from externalregulation failure and external audit failure. Finally, in view of the above problems, weputs forward some corresponding suggestions, hope to help the other City commercialBanks in their construction of internal control, and to reduce the incidence rate of financialaccident. So as to promote the healthy development of China’s banking industry.