Research On Internal Control Problems And Countermeasures Of H - Branch Of China Construction Bank

As an enterprise model engaged specifically in currency, commercial banks assume greater business risks than the general industrial and commercial enterprises. As a foundation for the safe and stable operation of any commercial bank, effective internal control is conducive to assuring the effectiveness of the commercial bank’s operations and the reliability of its financial and management reporting, and it also helps the commercial bank to protect and increase shareholder value and lower the likelihood and severity of unexpected losses and reputational damage. Therefore, it is necessary for any commercial bank hoping to elevate its business development level to establish and consummate its internal control system, which is also an inherent requirement for all commercial banks in China when the implementation of a comprehensive risk management is concerned. In recent years, an appropriate internal control system has been established in many domestic banks, including China Construction Bank, and they also continuously attach greater importance to the development of internal control, thereby achieving some success across the broad, including the head offices and branches at different levels. However, it has also been exposed by the non-stop emergence of banking law cases in recent years that inefficiency, poor implementation and many other issues with respect to the development and operation of internal control still exist in these commercial banks, thereby making it a highest operational and administrative priority of such banks to strengthen and further improve their internal control development. Because of the important role of commercial banks in China’s economy, the research about the governance of internal control system, especially which based on the current situation of state-owned commercial bank branches, propose targeted countermeasures, it has great significance for improving the China Construction Bank’s core competitiveness, providing reference for other commercial banks, promoting the healthy development of the entire financial system and so on. Starting from this, this article use the H branch of China Construction Bank as a case to analyze.This article describes research foundation of this article firstly, which focuses on the development of the internal control framework of Basel and the new requirements of the current COSO internal control framework, as well as the requirements of China Banking Regulatory Commission on the internal control implementation level. Then, introduce the basic situation of H branches, then from the five aspects,which include internal environment, risk assessment, control activities, information and communication,briefly discusses its internal control status, mainly use the author’s work experience, analyzing the existing internal control system, and take some interview or survey. And take a brief introduction to the use of CCB internal control evaluation system.Then analyze the evaluation result of 2014 annual internal control, and on this basis, take an in-depth analysis about its internal control evaluation process, supplemented by appropriate and effective field survey and interview with staff, so as to evaluate the external analysis, find out the main problems and the reasons of the internal control system in the H branches.Finally on the basis of the above analysis, the present situation in parts of the relative financial trade has carried on the analysis, research on branches of internal control compliance management mode has carried on the preliminary exploration, and then combined with the actual situation of H branch, put forward to further improve and perfect the basic principles and the main measures of internal control from different angles, and involves the obstacles and protection programs which may happen in management plan implementation process.