Study On Optimization Of Internal Control System Of FL Agricultural And Commercial Rural Banks

Regarding rural bank,it is considered as the crucial component of the banking system.However,the internal control issues have always been an important influencing factor on the sustainable and healthy development of rural bank since its formal pilot development in 2007.Many rural banks have shown problems which has resulted in frequent internal control failures and numerous impacts on their image in society in terms of lack of corporate governance,inadequate internal control system,lack of risk compliance management and so on.In such context,the development of rural banks has been repeatedly hindered,coupled with the fact that the main service targets of village banks are the residents of rural areas.They are facing a poor financial environment,high costs and high risks.Meanwhile,in 2017,the China Banking and Insurance Regulatory Commission exempted rural banks from the special treatment they have enjoyed in the past for a long term and adopted the same regulatory model as commercial banks.Therefore,many rural banks have been operating in a low-yield state and it is necessary to conduct an in-depth study on the development of rural banks in the current macro situation.In this regard,it aims at preventing rural financial risks caused by the ineffective development of rural banks.Based on the above matters,how to further improve the internal control system of rural banks to help them better cope with the development situation of the times is an urgent problem faced by rural banks,as well as the content of widespread concern in the banking industry.As a result,the thesis thoroughly researches the theories related to internal control management,searches the literature related to internal control and rural banks,as well as grasps the basic components of internal control.On this basis,FL Agricultural and Commercial Rural Bank is selected as the case study for exploring the deficiencies of the current control system of the bank in depth.In order to help FL Agricultural and Commercial Rural Bank to build a more scientific and efficient internal control system in the short term,the thesis fully absorbs the essence of internal control management theories and refers to the advanced experience of other banks.Then,it reconstructs the internal control system of FL Agricultural and Commercial Rural Bank under the guidance of relevant theories and explains the specific methods and measures to be used in the process of building the system with the expectation to help the bank move towards the development path of a scientific and efficient internal control management system.The thesis contains four parts and the first part is the introduction which briefly introduces the necessity of building the internal control system of rural banks,presents the background of the thesis,which further leads to the research topic of the thesis accordingly.The second part is the theoretical overview of the thesis which firstly defines the concepts related to internal control and then effectively sorts out the literature related to internal control system and rural banks at home and abroad for grasping the current situation of its domestic and international development.The third part is an analysis of the current status of research and it briefly analyzes the organizational structure form and the management measures adopted by the internal control of FL Agribusiness Village Rural Bank.The fourth part is the empirical analysis part which uses hierarchical analysis and fuzzy comprehensive evaluation method to analyze the results of the questionnaire on internal control issued to the employees.By relying on the relevant research results,it is able to understand a series of problems in the construction of the current internal control system of the target bank.Then,it carries out an in-depth analysis to reveal the underlying causes.The fifth part is the countermeasure suggestion part which mainly discusses the principle requirements for the construction of the internal control system,drawing on the successful experience in the construction of the internal control system at home and abroad.Furthermore,it proposes the optimization measures for the construction of the internal control system on such basis.