A Research On The Internal Control At The Stage Of Investigation And Evaluation Project Loan In Branch A Of Agricultural Development Bank Of China

During the “14th Five-Year Plan” period,investment in fixed assets continued to be an important engine for China’s economic development.Enterprises will keep maintaining high demand for project financing,and the banking industry go on playing an important role as the main financing channel in China.In order to prevent and control financial risks,serve the real economy,and prevent bank personnel from conducting project loan investigation and evaluation in violation of regulations,financial regulatory authorities such as the China Banking and Insurance Regulatory Commission have put forward higher management requirements for the investigation and evaluation of project loans among various banks across the country.In accordance with regulatory requirements,the Agricultural Development Bank of China(hereinafter ADBC)has continuously improved its credit business procedures in recent years,and has set up “four centers” in all provincial branches to accelerate the reform of credit business policies,systems and procedures.The establishment and operation of the investigation and evaluation center is the focus of the reform.As the key link of the credit business,continuous attention should be paid to the process management and risk control,especially the research on the internal control towards the project loan at the investigation stage,which plays a vital role in guiding the high-quality development of ADBC’s credit business.With the in-depth research of domestic and foreign scholars,the internal control towards bank credit business has covered many aspects such as policies and regulations,organizational structure,risk assessment,informatization construction,internal process management and supervision,and relevant research results have become an important guide to the operation and practice of project loan’s internal control.In recent years,ADBC has been deepening the reform of its internal system and mechanism,and has gradually explored risk management and control measures,which are suitable for the development of its own credit business.The research on the internal control towards the loan project at the investigation and evaluation stage can not only find out the problems and defects of its internal control,lay a solid foundation for further improvement of the internal control measures and mechanisms,but also promote the high-quality development of the project loan business of ADBC.This thesis takes the internal control of Branch A of ADBC at the investigation and evaluation stage as the research object,and uses relatively mature research methods at present to carry out the investigation and research.Firstly,this thesis uses the five-element theory of Internal Control(IC)in COSO Framework,combined with the business practice of Branch A’s loan projects at the investigation and evaluation stage,the internal control evaluation form was designed.Secondly,the questionnaire was designed through the Analytic Hierarchy Process(AHP),and after consistency judgment and data collection,the corresponding weight values of the internal control indicators at all levels were calculated.Finally,this thesis adopts the Fuzzy Comprehensive Evaluation Method(FCE)to score and evaluate the indicators at all levels,discover internal control problems and defects,deeply analyze the causes,and put forward practical suggestions for improvement and rectification measures.Through the research on the internal control of Branch A of ADBC at the investigation and evaluation stage,this thesis improves and perfects the internal control management at the investigation and evaluation stage of Branch A’s loan projects,which can not only enhance the profession quality and ability of assessors,improve the quality and efficiency of loan projects’ investigation and evaluation,but also strengthen the management of loan projects’ business,prevent and resolve business risks.What’s more,this study can help the development of Branch A’s loan business for key projects in the fields of rural revitalization,rural infrastructure,clean energy,etc.,and continuously improve the research and management capabilities of internal control at the investigation and evaluation stage of Branch A’s loan projects.In addition,it is of significance for branches in other provinces in the internal control management of similar business,and has certain reference value for the banking industry.