Study Of Internal Control System In City Commercial Bank

Internal control is a process and mechanism designed to supervising, controlling and correcting risk by establishing a series of regulation, procedure and methods, in order to achieve commercial bank's operational goal. As a special industry with high risk, establishing and improving internal control system is the foundation of security systems of banking industry.Lately the bank crisis are happening frequently, almost they are relation with failure of internal control. Hence, it is important for commercial banks to establish effective internal control system and avoid many risks. City commercial banks are the important strength which supports economic and small enterprise. Effective internal control is essential to upgrading city commercial bank's competition and assuring bank system's stable operation in competitive condition.At first, the writer elaborates theory and developing stages of internal control, and compares overseas commercial banks with domestic city commercial banks in experiences of internal control. Then, the writer draws the conclusion that it is essential and urgent to establish perfect internal control system by analyzing about the present problems of internal control in Chinese city commercial banks. Furthermore, putting forward the measures corresponding to the problems from the five interrelated components of integrated framework including control environment, risk recognition and assessment, control activity, information and communication and monitoring activities and correcting deficiencies. The targets are establishing perfect and uniform internal control system which not only can satisfy a request of the relevant authorities, but will be advantageous to the management and development of city commercial banks.