The Study On The Influence Of Commercial Banks Internal Control Effectiveness To The Credit Risk

In recent years, the financial crisis and produce a chain reaction of the economy, caused widespread concern around the globe. In 2008 the outbreak of the financial crisis led to the bankruptcy of lehman brothers and Washington mutual bank, in 2008 societe generale’s huge losses and in 2010 our country qilu bank huge deposit certificate forgery and so on, when the in-depth investigation, our found that these events occurred mostly with bank internal control system is not sound or missing, so the internal control of the bank on its credit risk has very important practical significance. In 2008 China’s five ministries jointly issued "Enterprise internal control basic norms", in 2010 issued the "Enterprise internal control supporting guidelines" requirements since January 1, 2011 at the same time in the domestic and overseas listed companies, shows the internal control system of China by the voluntary disclosure internal control information stage has entered the phase of mandatory, the study of internal control has very important theoretical significance. So it is necessary to research commercial banks internal control effectiveness on the effects of the credit risk.This paper uses different ways of retrieving analyses the relevant research literature, formed the research method, the reference to the research conclusion, and according to the theory of internal control and risk management theory,proposed this paper’s the research hypothesis.At the same time,select the development strategy,the effects of operational efficiency, reliability of financial reporting, the legal compliance of business management and asset security of commercial Banks as explanatory variables, and select the corresponding three indicators to measure the effectiveness of internal control, selection of non-performing loan ratio is as explained variable, selection of ownership concentration and equity properties as control variables, from the selection of the Shanghai stock exchange and shenzhen stock exchange to 14 listed commercial Banks as the research sample, establish the multiple regression model, and by SPSS statistical processing software is the influence of the validity of the credit risk internal control do the empirical analysis. The empirical analysis results, development strategy of credit risk has a significant negative impact, operational efficiency effect have no significant negative impact on credit risk, the reliability of financial report has a no significant negative impact on credit risk, operation and management of the legal compliance has obvious negative impact on credit risk, asset security has obvious negative impact on credit risk. By the empirical result, the commercial bank shall establish perfect effective internal control system to reduce the credit risk.