The Study On The Internal Control Of AC Commercial Bank's Credit Business

Nowadays, China is in a critical period of steady growth and structural adjustment.The supply side reform is being carried out in an orderly manner. In particular, the task of eliminating outdated production capacity and resolving surplus production capacity is quite arduous. In some areas, because of the single structure and not so regulated governance, coupled with changes in market demand, many large enterprises are strangled with trouble. In this context, the continuous increase in non-performing loans leads to more risks for the banks to lend money to the enterprises to a great extent.Therefore, commercial banks should continue to strengthen the internal control of credit management and improve the internal control system to improve the ability to resist the risk.Since its restructuring in 2012, AC Commercial Bank has optimized its credit review and approval process, so the internal control of AC commercial bank has been greatly improved, but there still exists deficiencies associated with the credit business.This paper helps the bank to establish an effective internal control system by combining the relevant situation of the internal control of credit business of AC commercial bank, so as to provide reference about the relevant experience of internal control of AC commercial bank credit business to other local commercial banks.The first part of this article is an introduction about the background, significance,research methods and research framework of the thesis. The second part mainly concerns about the theoretical basis of this paper,including the theory of information asymmetry and the theory related to internal control. The third part is the introduction of AC commercial bank, which starts from the credit business and organizational structure,described the current internal problems of credit business, including insufficient due diligence of credit officers, weak risk assessment; non-standardized loan payment and repayment system, a loan monitoring system which cannot found problems in a timely basis. The fourth part analyzes the causes of the internal control of credit business in AC commercial bank. The main reason for these problems is that the talent and skill of the credit business members is not good enough, the loan risk assessment standard is unreasonable, the credit business information system is not in place, and the credit service monitoring and early warning system is imperfect. Finally, in the fifth part, the author puts forward the countermeasures to improve the internal control of credit business of AC commercial bank, which involve setting up high-quality credit business team, improving the loan risk assessment standards, strengthening the credit business information system control management and improving the loan monitoring and early warning system.