The Study Of Luoyang Rural Credit Cooperative Internal Control System

On the basis of the observation and study of the related material about risk of Luoyang Rural Credit Cooperative, the thesis points out that the internal control in rural credit Cooperative is the foundation of the whole banking system construction and the key to ensure rural credit Cooperative even whole financial system.The thesis compares the internal control in China with that in the west. As per control theory, referring to international rule---Basel< Framework for Internal Control Systems in Banking Organizations> and issued by the People's Bank of China, the thesis analyzes the present status and main questions existed in the internal control in Luoyang Rural Credit Cooperative. According to safety and efficiency principles, the thesis puts forward the general train of thought and essential countermeasure in the internal control construction in Luoyang Rural Credit Cooperative. Meanwhile, the thesis brings forward the thought of internal control evaluating system.The result of the thesis indicates:Firstly, the need for internal control over Rural Credit Cooperative is justified by the risk and concerns over the security and efficiency of its operating.Secondly, internal control is not just a set of policies and procedures. It's a whole system, including control environment, tone at the top, risk assessment, information and communication, control activities and monitoring. A systematic way to deal with internal control can make it fresh and vibrant.Thirdly, in recent years, Luoyang Rural Credit Cooperative has done a lot in enforcing internal control construction and has got some achievements. At the same time, there are still some feeble aspects in theinternal control, which results in serious hidden risk.Fourthly, to resolve the questions existing in the internal control of Luoyang Rural Credit Cooperative, it therefore is important to innovate institutionally the internal control system, to perfect corporate governance structure, to improve the consciousness of commitment of its personnel, to establish internal control evaluating system, and etc.