A Relativity Analysis Between Corporate Governance And Internal Contral Of The Commercial Banks In China

As an industy with high risk and liability ,bankinging industry is a critical component of a county's economy and it always attracts attentions of governments, scholars, enterprisers and even common people, for its close relationship with social life and keep influence to society stability .Depattment watching,society watching and industry self-discipline are effective measure in the view of keeping away risks. Internal control is the foundation of security systems of banking industry. Effective internal control systems can help banking organizations avoid risks and failures. there will be an best result of Internal control,if we improve the Corporate governance.For Corporate governance have great relationship with internal control. A rational Corporate governance can guarantee the validity of the Internal control which could help to realize the aim of the company. A rational Corporate governance is important to run finance system steadily.Firstly, The text expound the theory of the Corporate governance and internal control. Secondly, expound the relationship between the Corporate governance and internal control connect with circumistance of the internal control, risk realize, internal control step, information communion,monitor and reclaim., study the realition between the Internal control of commercial bank and ownership structure, board director and supervisor board characteristics base on the samples of Commercial bank of year 2005 to year 2007. As a result, The first proportion of the shareholder has an positive infection with Internal control.But,the intendance of the other shareholder has a little influence with Internal control. The size of the directorate and supervisor board has an negative infection with Internal control.The salary inspirit has no influence with Internal control. According to the results above, the article suggests some advice whichcontributes to improve the internal control system of enterprise through optimizing ownership structure, building construction of board director and supervisors board.