Proposed Internal Control System In Tieyin Branch Of Changsha CCB And Its Implementation

Finance is the key segment of modern economic system. Along with the advance of our market economy and deep reformation of our financial regime brought on by the implement of our opening-up and reforming policy, continuous amendment and improvement have been gained in our financial system and financial market, and China has been enhancing her macro-financial control and making great strides in joining the global financial system. However, the financial crisis in Southeast Asia and the vigorous competition in global finance have been giving rise to our banking risks during the past few years, what makes worse is that our state-own commercial banks are inattentive of establishing and tightening their internal control while exerting themselves to extend their business and increase their subsidiaries, which leads up to lax supervision and disobedience to rules and regulations committed by bank staff. Therefore, it is of crucial importance and urgency for us to discuss and research how to construct and undertake sound internal control systems that match up to the operation and management of our state-own commercial banks.This article selects the internal control system of Tieyin Branch of ChangSha,CCB (shorted as Tieyin Branch hereinafter) as the question of discussion, and puts forward, based on a up-to-date survey of internal control theories and practices of foreign commercial banks, the principles which should be observed in planning and designing internal control system in a commercial bank. Furthermore, this article analyzes the problems existing in the internal control system of Tieyin Branch and proposes a control system which can supervises Tieyin Branch as a whole, namely a dynamic system that takes the business sectors and management information system of Tieyin Branch into consideration, also, this proposed system combines risk prediction and control soundness evaluation, internal audit and external supervision. In the end, this article suggests some procedures and measures in unfolding this system to achieve proper internal control in Tieyin Branch.