Under The Perspective Of The Internal Control Of Commercial Bank Credit Risk Control

Since the beginning of the era of financial globalization,financial linkages between countries more closely to individual regions,deteriorating financial environment may affect the stability of the global financial environment.The subprime mortgage crisis in the United States in 2008,the final evolution of the international financial crisis is an example.Furthermore,as the debt crisis originating in Greece the euro area in many countries were affected.The world financial system is now woven into a large network,including banking dominant position in the network;the degree of harm in a variety of financial crisis,banking crisis on the economy is very deep,even to the country's economic lifeline.So,to prevent bank risks is the focus of attention of the international banking industry and national regulators.The banking industry is the industry of the business risk,business risk,management risk and benefit.Therefore,the risk is inevitable in the course of business,including credit business bank's traditional business has been so far,from the date of birth of the bank loans are an important part of the assets of commercial banks,credit risk has also become the main risks of commercial banks.According to the World Bank on the global banking collapse of the case studies show that the credit risk of internal control is inadequate or flawed lead to bank failures.Currently,the credit business is still the core business of commercial banks in China,but also the main source of income of China's commercial banks.According to the statistics of the China Banking Regulatory Commission,China's commercial banks non-interest income accounted for about 20%,interest income of up to 80%,so credit risk is also China's commercial banks are most concerned about one of the risks.A huge amount of non-performing loans of commercial banks in China in 2004,was once a heavy burden for China's commercial banks,since the historical burden has not been fully shake off,facing the open domestic financial markets in accordance with the accession to the WTO,China promised,to allow foreign financial institutions engaged in financial activities to the Chinese market,domestic financial institutions can also participate in international financial activities.Based on this background,many domestic banks have listed some foreign financial institutions doing business in China,so China's commercial banks have to face the incentive competition in the international market.However,the late start of the domestic commercial bank credit risk control,and many started to absorb foreign theoretical study and learn from the advanced western bank of practice management experience;however,China's commercial banks have a special historical background and living environment,these theories effective use of research in China's commercial banks to take some time.In addition,for a long time,domestic commercial banks in the development process to focus on expanding the business scale,the pace of development to the neglect of risk control.China's commercial banks' internal control system in terms of institution building,evaluation methods,process design,are lagging behind the advanced foreign banks.Therefore,China's commercial banks should be as soon as possible with the international financial sector standards,starting with system specifications close to the common international standard,to learn from foreign advanced bank management experience,efforts to explore the ways and means of their own credit risk management and control,strengthening of credit risk management to ensure the safety of China's commercial bank credit assets,to improve their management level,China's commercial banks in an invincible position in the competitive international market.China Construction Bank has a relatively sound credit risk internal control organizational structure,the first in the domestic commercial banks to use internal rating system,many times the domestic and foreign media as "China's most robust banking",it has good internal management system,these advantage in the domestic commercial banks is very significant.In addition,China Construction Bank as one of the countries four line,and China's domestic commercial banks have the same living environment and a similar historical background.Therefore,the internal controls of China Construction Bank's credit risk on the domestic commercial banks are also enlightening.In this paper the structure and content.The first chapter is the Introduction,introduces the paper studies the background and significance,and the use of the main methods and ideas,and referred to the article the possibility of innovation and inadequacies.The second chapter is a literature review,a review of internal control theory at home and abroad,internal control development through four stages,has now entered the stage of a comprehensive risk management framework;then introduced the control of the Basel Committee's risk of commercial banks and the China Banking Regulatory institutions related to the internal control of commercial banks in China studies,and as the theoretical basis of this study.The third chapter is devoted to the meaning of the commercial bank credit risk,characteristics,causes,identification methods and internal control of credit risk theory.The fourth chapter is a case analysis example,refer to the COSO internal control of the basic framework and credit risk internal control basic theory to analyze the internal control of the credit risk of the China Construction Bank,and through the analysis and evaluation of risks associated with indicators of China Construction Bank,China Construction Bank China Construction Bank in the credit risk control effectiveness,and this summed up the inadequacies of China construction Bank in the internal control of credit risk.The fifth chapter is based on the basis of the previous analysis,a complete set of commercial bank credit risk internal control recommendations.Article the possibility of innovation is used to integrate theory with actual case,with reference to the COSO report on internal control framework to analyze the internal control of the China Construction Bank credit risk,more than in previous studies from the overall banks' internal control,and less on specific within the control of the business to study the situation,which makes this article with a large practical significance.And prevention in the analysis of China Construction Bank credit risk through institution building and data evaluation,analysis,both quantitative analysis and qualitative analysis,analysis on the problems of China Construction Bank,the introduction of the actual cases help.For the increasingly complex international environment and the ever-changing financial risk,effective recommendations to strengthen the internal control of credit risk under the new situation,China's banking industry.