Study On Internal Control In Domestic Commercial Banks

Since the beginning of the end of the last century, the process of economic integration worldwide, making no longer maintain a traditional and stable development, and economic stake in the financial sector is also faced with challenges and opportunities of the situation, especially in the new century, the world’s financial risk has been of great concern, and thus the risk caused by the world or region between the financial crisis continue to occur. Important institutions, commercial banks as the financial sector has its own special functions and risks, the risk of commercial banks by the financial risks are passed not only the direct impact on the sustainable development of the bank itself, but also involves a country’s financial order and the changing economic environment.In China, the gradual liberalization of the financial environment in recent years the domestic financial sector step by step with the world, the development of more diverse, the development direction of a more diversified financial philosophy of the developed countries has significantly contributed to the in-depth development of China’s financial industry This led to the strategy of going out of China’s commercial banks became increasingly obvious that the more severe the degree of competition between commercial banks, in order to obtain more stable and sustainable development trend, China’s commercial banks have to attach importance to risk control and avoidance up. April26,2010, the Ministry of Finance, the Securities and Futures Commission, the Audit Commission, the Banking Regulatory Commission, Insurance Regulatory Commission jointly issued the "internal control supporting guidelines for the construction and improvement of the internal control of commercial banks in China to provide ideas.This thesis domestic commercial banks’ internal control entry point, focus on several elements of internal control, and fully learn and read the results of previous studies and theories on the basis of internal control for the domestic commercial banks shown to analyze and learn from the experience of internal control of commercial banks in developed countries under the premise, summed up the domestic commercial banks should focus on resolving the internal control issues, and ultimately puts forward to strengthen the domestic commercial banks’ internal control path selection. This study consists of the following five parts:The first chapter the introduction. Described the background and significance of the subject topics on the basis of the relevant literature at home and abroad discussed and concluded that the method used in the research process and research ideas.The second chapter the theoretical basis. Internal control is prevalent in many industries, so this part of the basic concepts of internal control to clarify and examine the evolution of the internal control; On this basis, further to the commercial bank’s internal analysis of the basic internal control of commercial banks the elements and their relationships.The third chapter introduces the present situation, the existence question and the reason of China’s commercial banks internal control. It introduces the current situation and the existing problems and reasons of China’s commercial banks internal control mainly from the five elements of internal control. The problems include:(1) unreasonable organization structure, too long management chain, lack of internal control culture;(2) laggard risk measurement and control technology method, lack of quantitative risk assessment talent;(3)ignoring the security problem of the information transfer, stumble information transfer;(4) insufficient integrity and effectiveness of internal control, lack of organic combination of the risk control and business development, hampered implementing policy;(5) insufficient authority of the internal audit, lack of appropriate privileges, lack of independence between the internal auditing department and personnel, generally low quality of the internal audit staff.The fourth chapter is foreign commercial banks internal control and the enlightenment. It gets some relevant inspiration of commercial banks internal control construction on the basis of introducing the practice of foreign commercial banks internal control construction:(1) strict organizational structure and independent of the effective the internal audit organization;(2) independent of each other business department and defined responsibility;(3) the perfection of accounting control system;(4) strict authorized examining and approving procedures;(5) reasonable and orderly internal inspection system;(6) pay attention to the commercial Banks internal control system and method innovation;(7) pay attention to credit risk management;(8) highly intelligent management of internal control;(9) effective staff management;(10) pay close attention to the advanced international bank of internal control new changes.The fifth chapter is the train of thought of China’s commercial banks internal control consummation. It puts forward some ideas for China’s commercial banks internal control consummation on the basis of foreign commercial banks internal control practical experience according to the proposed commercial bank’s internal control problems:(1)deepening knew, clearing objectives, establishing scientific organization structure, cultivating and populating internal control culture;(2) establishing a scientific risk constraint mechanism, promoting risk assessment construction:(3) perfecting the internal control system, strengthening the internal control construction of key business, perfecting the internal control technology;(4)improving the information and communication system;(5) establishing and perfecting the internal supervision system, strengthening internal audit system.