Research On The Credit Business Internal Control System In J Branch Of The AB Commercial Bank

Commercial banks play an important role in China’s financial system and the whole economic system. Credit business, as the traditional business and core business of commercial banks, is the main source of income of commercial banks.At present, the development of internal control of commercial bank credit business in our country belong to the early stage. Although the commercial banks for credit business activities have been initially built up a more comprehensive internal control system,but in the understanding and the implementation process of internal control, there are many problems need to be constantly improved.China Banking Regulatory Commission released data show that as of the end of 2015 the balance of non-performing loans and non-performing loan ratio of commercial banks continued to climb.In January 2016,two employees at the Beijing branch of the Agricultural Bank of China (ABC), have been detained by police for allegedly stealing 3.9 billion yuan worth of bills of exchange from the bank’s coffers. All these show the necessity and urgency of strengthening the internal control of credit business of commercial banks in our country.This paper is based on asking questions,analyzing and solving questions, mainly adopts the literature methodology, study the internal control, internal control of commercial bank credit business related theory.Adopt the method of combining theory with practice, through the investigation of the J branch of AB bank, analyze its present situation, find out the existing problems, and analyze the reasons, and based on this, advances the suggestions to improve the credit business internal control.This article first introduces the definitions and the particularity of internal control elementary theories and contents, and then based on these theories, it described the credit business internal control system of J branch of the AB commercial bank in detail, and through case study, it pointed out the weak spots. On the base of analysis,this paper makes some improvement suggestion.Including improve restraint and incentive mechanism,optimize the communication and the evaluation mechanism,implement the system of credit business internal control strictly,strengthen the construction of the credit of human resources and the internal supervision function.Trying to improve the establishment and implementation of the credit business internal control of AB bank J branch and ensure the safety of its credit assets.