Research On The Construction And Optimization Of The Internal Control Mechanism Of YC State-owned Commercial Banks

Since the financial crisis,international regulatory authorities have been tighten?ing up on financial institutions.As an inevitable requirement for opening wider to the outside world and integrating into the international community,China has taken the initiative to implement strict supervision standards,and further strengthened financial supervision and risk prevention&control.The increasingly austere regulatory situation in China puts forward higher requirements for the internal control and management of the commercial banks.Especially,in recent years,the sustained development of finan-cial derivatives,the marketization of interest rates,the integration and innovation of Internet finance have brought great challenges to the internal control and management of commercial banks.Therefore,it is urgent and important to study the internal control mechanism of commercial banks,especially state-owned and large-scale banks.According to theories on internal control which are the most popular internation-ally and the regulations on internal control management of commercial banks in China,this paper studies the internal control mechanism of commercial banks through docu-ment and individual case analysis.YC bank is only 10 years old and weak on internal control.Therefore,YC is taken as a typical representative of state-owned commercial banks.This paper analyzes the deficiency of the internal control mechanism of YC Bank at the present stage,points to the crux of the problem,and suggests that it can be optimized from six aspects-organization and management mechanism,internal control system management,risk management and evaluation mechanism,internal control re-striction mechanism,information and communication exchange mechanism&internal control supervision and evaluation mechanism.This paper attempts to help YC Bank to establish a set of omnidirectional and effective internal control mechanism to adapt to the changing economic situation,to improve its internal control management level,and to provide reference for other state-owned commercial banks.