Study On The Internal Auditing Problems Of Commercial Bank Credit Card Business

At present,China's economic development has entered a period of new normal.As a special financial enterprise,the operation and development of commercial banks affect the stability of normative financial system in the country.In recent years,commercial banks have closely followed the pace of the economic new normal in terms of business philosophy and model,and developed various businesses vigorously.The rapid growth of Internet financial trading platforms has boosted the expansion of the consumer market,and the number of credit cards issued by commercial banks has seen a spurt of growth.Compared with foreign countries,the emergence of credit card business in our country is relatively late,and the commercial banks' awareness and ability of risk management in the credit market environment are relatively weak.The quality of credit card asset is a major issue that commercial banks need to solve urgently.As a state-owned bank involved in the issuance of credit cards earlier in the country,C commercial bank invested a lot of resources in the credit card business,but with the rapid development of its business,the bad credit card debts are increasing,and the non-performing rate is generally on the rise.In order to prevent credit card operational risks and optimize asset structure,C commercial banks should actively take advantage of internal audit.In the current economic environment,both credit card business development and risk management are equally important.The establishment of a set of operating models of internal audit suitable for C commercial bank's credit card business can provide a practical reference for its business development,a guarantee for the stable operation of credit card business in the future,and e a new perspective on internal auditing of commercial bank for commercial financial institution,and enrich the research on commercial banks' credit card business.On November 28,2018,the Supreme People's Court and the Supreme People's Procuratorate jointly issued the "Decision on Amending the" Interpretation of Several Issues Concerning the Specific Application of Laws in Handling Criminal Cases That Hinder Credit Card Management".Relevant regulations have been made on the "malicious overdraft"of commercial bank credit cards that have been frequent in recent year.Throughout the recent years,the various policies issued by the China Banking and Insurance Regulatory Commission have always closely focused on the risk prevention and the healthy development of the financial system,and have continued to increase the punishment of chaos in the banking market.At present,the development of fintech has changed the structure of the credit market.The Internet financial chaos has exacerbated the phenomenon of co-debt.Under the background of credit card risk supervision,it is necessary to continuously improve the internal audit of commercial banks.This study was performed using a case study method and selecting C commercial bank as a case.By understanding the current theories and methods of internal audit research on credit card business of domestic commercial bank,introducing the development status of credit card internal audit in C commercial bank and combining the above theories with actual operating situation the problems and causes in its development process were analyzed to explores effective countermeasures.This thesis has five chapters.This thesis starts with the internal audit theory of the credit card business in commercial banks,and elaborates on the scope,characteristics,methods,theoretical basis and influencing factors of audit in detail.The third chapter of this thesis introduces the basic situation,management,auditing methods and scope,and actual work of C commercial bank and its credit card business,providing a source for the formation of subsequent chapters.In Chapter 4 of this thesis,the problems existing in the internal audit of C Commercial Bank's credit card business are raised,which are elaborated from the four aspects of the internal audit scope.In turn,authenticity verification of credit card application has not been executed as required.Auditors were unable to take advantage of updated credit approval system and policies.Internal audit early-warning system has not been in place to detect any risk precisely.The internal audit analysis has not been well applied for business improvements.Combined with the current operating status of credit card business in C commercial bank's,the causes of the problems in internal audit were analyzed,which indicates a poor audit system,inadequate internal training programs,the out-of-date audit tools and the improper internal incentive program in C commercial bank.In Chapter 5,recommendation are provided for improving the internal audit work on credit card business of C commercial bank's,including establishing a sound internal audit system,accelerating the construction of a professional and productive audit team,strengthening the use of computer-assisted audit techniques and applying scientific management in the workplace.This thesis discusses the internal audit of the credit card business in C commercial bank,and suggests an increasingly important role of internal audit in preventing credit card financial risks and optimizing asset structure with the in-depth reform of the economic system and the continuous innovation of financial instruments.Although China's commercial banks have established a relatively complete internal audit system,the development of internal audit has not kept pace with the development of the business.The specific implementation has also lacked sophisticated management and failed to make an equal commitment on both business operations and risk management.It is hoped that the present study might provide a useful recommendation and advice for the internal audit of credit card business of C Bank,and also make a valuable contribution to the research on the internal audit of credit card business of domestic commercial banks.