Discussions On Internal Control Of Bank Of China JX Branch

As we all know,internal control is an important way for commercial banks to control risks.Specifically,it refers to the process of positive prevention,effective in-process control,and proper post-disposal handling of risks by formulating and implementing a series of procedures and systems.Ensure the realization of commercial bank business development goals.At present,commercial banks are faced with the ever-changing operating environment and the risk of an unending trend.On the other hand,they face the strong regulatory status of supervision institutions such as the China Banking Corporation,and internal control becomes more and more important.It is undoubtedly a commercial bank in China.Maintain the foundation for long-term stable,healthy and sustainable development.Judging from the recent years,various commercial banks from the head office down to the branch line have not devoted themselves to internal control,and investment in internal control construction has risen.But in the end,because the development process of internal control in our country's commercial banks is relatively short,the theoretical discussion and practical experience are all relatively shallow and need to be further improved.For our country's commercial banks,if we want to improve our internal control,we must first find out the gap with the developed countries,and cut from the shortcomings.Combining the actual conditions of our country's commercial banks,we can find that the problems in the internal control of our commercial banks are mainly in the following ideas :(?)The internal control environment is weak;(?)Risk assessment technology lag behind;(?)The internal control system construction is backward;(?)The effective information communication channels is lacking;(?)Internal audit and monitoring mechanism is not perfect.There are many reasons for above problems in the internal control of commercial banks in China.In order to establish a set of internal control systems for commercial banks with Chinese characteristics,first of all,it is necessary to thoroughly investigate the causes of the above problems,and then to explore solutions to these deep-seated problems,provide practical and feasible suggestions,and ultimately improve the commercial banks in China and the significance of the level of internal control.Bank of China JX branch as a provincial branch of a state-owned commercial bank,the case is universal.Combine the bank's organizational structure,risk assessment,control system development and implementation,information system construction,internal audit,etc.,Analyze the bank's defects in internal control,profoundly study its causes,and summarize relevant improvement methods,For other financial institutions use the industry reference.This article starts from the background and significance of the internal control of commercial banks,briefly introduces the research ideas and research methods,and then elaborates the internal control concepts and characteristics of commercial banks.The principal-agent theory,insider control theory,property rights theory provide the theoretical basis for the study of this article.The case study combines the basic situations of the organizational structure and internal control status of Bank of China JX Branch,introduces several internal control issues of the bank,and explain the weakness of internal control work of Bank of China JX Branch.Organizational structure arrangement is unreasonable,Awareness of risk management staff is weak.The evaluation technique is backward,the risk assessment is not comprehensive,and the coverage is narrow.There are problems in the formulation of control systems and the implementation of systems.The construction of information systems is lagging and the efficiency of information transmission is low.The quality of internal auditors is generally low,and internal auditing techniques are relatively backward.Afterwards,we further analyze the causes of the internal control problems of the Bank of China JX Branch,and then put forward the improvement of the internal control of the Bank's reforms.Build an organizational structure with clearly defined rights and responsibilities.Formulate sustainable human resources policy.Establish a target assessment mechanism based on internal control.Improve the framework for risk assessment of credit operations.It is necessary to consider risks from a qualitative perspective,and also to measure the size of risks from a quantitative perspective,and establish professional credit risk assessment indicators.Establish dynamic risk monitoring and complete risk assessment system.In response to the emerging and innovative businesses,the company further standardized its internal control operation procedures and defined its responsibility division and authorization system.Rationalize information exchange and communication channels.Self-develop comprehensive and multi-level information system.This promotes the efficient transfer of information from top to bottom and full communication.Strengthen internal audit and external supervision.Accelerate the construction of professional team of supervisors.Improve the dynamic supervision and management system of internal control.Promote self-assessment of internal control and strengthen external monitoring of internal control.Only by making progress in the process of continuously improving their ownproblems,and improve internal control mechanism and improve overall strength,can our commercial banks enhance their market competitiveness and achieve the ultimate goal of building a world-class bank.