Study On The Commercial Bank Branch’s Internal Monitoring System

Since the reform and opening up in1978in our country, we have realized a great development in our country banking industry,it embodies the establishment of modern banking system, the significant increasing of overall strength,the continuous improvement of the mechanism and the international status.But it continues to maintain the traditional developing pattern of depending on the growth of credit scale, interest income, costs, super clients and huge projects extravagantly.At the same time,the external environment of commercial bank is changing profoundly;the economic growth rate is slowing down;the economic structure adjustment will be deepen further;the reformation of market-oriented interest rate is speeding up;the new capital accord is going to be implemented formally and the social demand is changing sharply. All these changes have put forward a higher request for the commercial Banks internal control system.To perfect the internal monitoring system of commercial Banks and to improve its effectiveness is the important question for the commercial Banks managers to study.On the other hand, the national department also requires listed commercial Banks to strengthen internal monitoring. In May2008, Ministry of Finance,Securities Regulatory Commission,National Audit Office,Banking Regulatory Commission,Insurance Regulatory Commission jointly issued the"basic norms of internal control", and in April2010issued the"Guidance Internal Control Practice Note1-18","Guidance of Internal Control Evaluation"and"Guidance of Internal Control Audit".The listed commercial Banks should improve internal monitoring system.to adapting the national department’s requirement.Based on the principle of theory combining with practice and taking the real data of the internal monitoring system of NC Sichuan branch as model, the author has discovered the problems existing in the internal monitoring system and proposed solutions to these issues from the monitoring basis, design and implementation, assessment, and the evaluation of the monitoring system, after his analyzing case systematically and basis on the COSO guidance on monitoring internal control systems and guide and investigation on-the-spot.After thoroughly researching the problems of the internal monitoring system of the NC Sichuan branch,the author has refined some common factors of commercial Banks’ internal monitoring system. On the one hand it has a certain guiding significance for commercial Banks to improve their internal monitoring level;on the other hand,it provides the guide for internal control evaluation of commercial Banks based on the COSO internal control guidelines and other monitoring activities. At last.it is helpful for commercial Banks to strengthen internal control effectiveness.