Study On Internal Control System Of XX Branch Of Huaxia Bank

Financial industry is the lifeline of the national economy. Joint Stock System Bank accounted for a domnant position in the financial industuy. Banking, as a high-risk, high debt industuy, because of its high relevance to the whole national economy, it has been the focus of the whole society. Therefore, how to gurad against risks of banking has become the important subject of banking and academic circles. Since 1980's, financial crises that have occurred constantly in the world have aggravated failures of some major banks. There was no exception that those crises and failures originated in vital problems in internal control of the banks. By December 2006, China's banking industuy has been fully opened to the outside world and the transition period of China's Entry to WTO has been ended. Therefore, the international comptitions are escalating. Thus commercial banks in China speed up the process of joint stock system reform. However, in the porcess of the reform, many major cases of bank failures emerged and exposed their weaknesses in internal control. Internal control has become the core competitiveness of joint stock system bank. The failure of internal control will bring disatrous consequences. So the study of the internal control of joint stock system bank has far-reaching significance.Based on the case of the internal control system estabishment in××Branch of Huaxia Bank, this thesis studies on internal control of commercial banks in China, abundantly expounds the development of internal control theory, concludes the revelation from western commercial banks internal control system to our internal system establishment. Then thesis dicusses the present situation and existing problems of internal control of xx Branch of Huaxia Bank referring its internal control environment, management, organization structure, inspiration system and executive power, puts forward advices to reinforce company management by perfecting inspiration and regulation system, improve organization coordination, perfect internal control systen, strengthen internal audit and system of abiding by regulations, establish and perfect risk recognition and evaluation system, establish a regular announcement system of "internal control report". The thesis also advises that internal control system establishment should be based on the strategic targer of the joint stock system bank and requirement of Bank Regulatory Commission, and needs the attention and participation of all the staff and hence the internal control can play a role substantially.