The Research On The Internal Control Of Commercial Banks Based On The Contract Theory

This article is from the perspective of contract,among the many experts and scholars use the contract theory to carry out reconstruction of the internal control systems of commercial banks.We have internal controls on the analysis of institutional reasons,and establish internal controls over the nature of the contract. The essence of the internal control of commercial banks is a group of contracts which are concluded together by the Commercial bank interior all members.The goal is to coordinate between each control main body the interest relations,to reduce the internal finance transaction cost and to guard finance risk.The economics function of internal control is to reduce the bank's internal transaction costs,lower costs and principal-agent contract of bank management to make up incomplete,and ultimately achieve commercial banks to establish an effective system of internal control purposes.In the course of the study I read a lot of literature,and use inductive and deductive reasoning method of combining.This article is from the perspective of contract design of internal control,which has not yet been touched by domestic and foreign scholars in the field,and this is the innovation of this article.In the first half of this paper,I conducted a large amount of theoretical study and sum up the nature of internal controls.In the latter,I sum up the methods of construction of the internal control system.For example,Strengthen the employees agree to create a good internal control environment,which is based on the contract before signing and implementation of environmental conditions at the time of consideration.Commercial banks should build a sound internal control system,from the contractual point of view it is a pre-contractual aspects of the terms of the design. Banks need to improve risk identification and risk management system to strengthen. Banks should establish an effective internal control monitoring and incentive system, which relates to what kind of time to take control measures to ensure the effective implementation of internal control system.