Research On The Internal Control Of X City Commercial Bank

Under the background of overall economic downturn,deleveraging,gap of interest rate narrowing,and fierce competition,internal control problems have emerged from financial industries in recent years.Losses caused by the imperfect internal control system are common in commercial banks.Compared with developed countries,Chinese commercial banks are dwarfed in control of risks and their internal control system,which will hinder the sound development of commercial banks.Therefore,if commercial industries can conduct smoothly,internal control must be solved as soon as possible.This paper takes Commercial Bank of X city as a case study,seeking for the problems of its internal control and providing some solution.Five parts are included in this article.The first part illustrates necessity and feasibility of internal control through background and significance,research statues at home and abroad and methods of research;The second part introduces relevant concepts and theoretical basis of internal control;The third part presents the background of commercial banks' internal control in X city;The four part mainly analyzes internal control of the commercial banks in X city from control environment,risk assessment,internal control activities,information and communication,supervision and evaluation,based on status of development,governance structure and operation pattern.Meanwhile,many intractable problems need us to delve into and solve;Finally,five measures optimizing the internal control of Commercial Bank in X city were suggested in this paper: in control environment,updating organization structure,emphasizing function of the internal control,building internal control culture,and optimizing human resource management are required;in risk assessment,building an effective assessment system of risk,pragmatical risk assessment tools and systematical assessment methods are needed;in control,perfecting the internal mechanism,strengthening the executive supervision and clarifying the employees' responsibility of internal control are covered;in supervision system,the independence of internal audit and the professional quality of auditor should be ensured.This paper is to improve the operation status of X city commercial banks,and to maintain steadily growth under the downward economic.Meanwhile,this thesis hopes to provide references for other commercial banks in some sense.