The Study On The Internal Control Of KJ Rural Commercial Bank

With other industries, high risk is one of the biggest feature of the industry with respect to the banking industry, banks obtain profit foundation is to risk management. Therefore, the internal control for banks than other enterprises is more important, the internal control is a very important basis that can guarantee a bank long-term business and don’t fail.For from credit cooperatives reform of rural commercial bank, its itself has the congenital disadvantage, in the aspect of internal control and risk management than other state-owned commercial Banks, joint-stock commercial Banks more backward, and there are many defects and problems of the internal control.This paper selects KJ rural commercial banks as the main body of the analysis, mainly because of its representative.KJ rural commercial bank restructuring in 2007, has been nearly ten years of time.During these ten years, the KJ rural commercial bank has been working hard to develop and improve its internal control and expand the operation. It has already completed the transformation from the credit cooperatives to the rural commercial banks.Now KJ rural commercial bank is in transition to joint-stock commercial Banks "secondary transformation" stage, in business innovation, constantly on the network to the field expansion, study hard for the joint-stock commercial Banks in terms of performance appraisal of experience.These are the internal control challenges. In response to these circumstances, the internal control and did not make a corresponding improvement, has yet to establish a sound risk management system, performance appraisal and human distribution system does not play to motivate employees. Employees lack of risk awareness, risk concept is difficult to implement in every employee’s working process.These problems exists in the risk of a lot of hidden trouble, for KJ the reform of the rural commercial bank, will play a negative role.This article is starting from the situation, KJ rural commercial bank’s internal control situation analysis, find out the internal control yet to solve the current problems and causes of, on the results of the analysis put forward the suggestions to improve the problems existing in the internal control.Through analyzing KJ rural commercial bank internal control, to other rural commercial bank in the province and for the future development of the internal control construction plays the role of reference and reference.The in part of the first chapter introduced the theory in the study of the paper and the actual background and research significance, and through reading the literature of domestic and foreign about the internal control theory research and practical results are roughly described, the research mentality and the characteristics and the method are described.The second chapter is mainly about the predecessors on the theory of internal control, specific from the total internal control theory, the internal control theory of commercial banks and rural commercial banks internal control theory three angles to describe.From the third chapter began on KJ rural commercial bank’s internal control present situation analysis, analysis the existing problems and find out the causes of problems, separately from the internal control environment, risk identification and evaluation, internal control activity, information exchange and feedback and supervision and evaluation of these five aspects to carry on the analysis.In the fourth chapter, I put forward the corresponding improvement proposals from five aspects mentioned in the previous chapter, according to the problems and reasons of the previous chapter.The last chapter is a summary of the whole article, and because of the author’s own level is limited, there are shortcomings, hope the teachers and students can be helped, in the future will continue to strengthen the study and discussion.