The Internal Control System Design Of Individual Housing Loans Of Baoding Branch Of China Construction Bank

Since1992China Construction Bank in Beijing released China’s first individual housing loan, the business has been quietly risen in domestic commercial banks. With the comprehensive reform of our housing system and gradual deepening of reform and opening up of the financial system, commercial banks have been gradually identifying the individual housing loan as an important strategic direction and profit growth point. Individual housing loans are mostly long-term loans, so the risk is hidden, and after the rapid development of the real estate market in recent years individual housing loans currently have entered the high incidence of risk. Throughout the events and risks of domestic and foreign commercial banks in recent years, we found that defects in the design or operation of internal control is the main reason for the frequent incidents of commercial banks defective design or operation of internal control is the main reason for the frequent incidents of commercial banks. Therefore, my paper related to Internal control of individual housing loans is not only has the necessity, but also has the urgency.This paper is divided into five parts. The first part introduces the background and significance of the topic, the status of current research and studies and the study scope methods and ideas of this paper; the second part describes the internal control theory of individual housing loans:COSO Internal Control Theory and our existing internal control system of norms of individual housing loans; the third part introduces the specific situation of internal control of individual housing loans of Baoding Branch of China Construction Bank, which are understood and mastered by the author through six months of professional practice and field research; In the fourth part, based on the foregoing interpretation and analysis of the relevant literature and theory, the actual operation of internal control of individual housing loans of Baoding Branch of China Construction Bank is evaluated from the five aspects, which are the control environment, risk identification and assessment, control activities, information and communication, and monitoring, and the paper analyzes the shortcomings of the five elements, such as internal control system is not updated timely, business processes is unreasonable, file management is not standardized and internal control self-assessment is useless and other issues; In the fifth part, based on the above analysis and evaluation, in order to improve efficiency and effectiveness of banking operations this paper sorts out and design the internal control system of individual housing loans of Baoding Branch of China Construction Bank:drawing out the business process diagram and proposed targeted improvements against the defaults of the five elements. Such as proposing implementing measures to insure the loan signed in interviews, the full implementation of automatic approvals based on "A+P" management system, promoting the on-line file scanning system and the establishment of a comprehensive internal control and compliance management platform and other issues.Establish, improve and perfect the internal control of individual housing loans is a long-term work, which requires theoretical bold innovation, and more importantly careful execution in practice. Innovation of this paper is that applying the COSO Internal Control Theory to the internal control evaluation and design of individual housing loan business of Baoding Branch of China Construction Bank. This paper is a useful attempt in COSO Internal Control Theory’s microscopic applications, hoping to play a role in the optimization of internal control of individual housing loans of the Baoding Branch of China Construction Bank and other commercial banks.