Internal Control Of Heze Branch Of Agricultural Bank Of China

Commercial Bank, a high-risk industry, is the core of financial industry. The concentration of Commercial Bank Operation is to strengthen internal control and defend operation risks. The main factor is the inefficient internal control, for instance, Barings Bank, Lyonnais Bank and Resona Bank. Since 2007, the sub-prime mortgage loan crisis has butterflied the global financial crisis which expands from virtual economy to real economy; therefore, the risk management on bank is very emergent.As the commercialization of state banks, the contradiction between weak internal control and internal management missing is becoming more and more obvious in commercial banks. In recent years, commercial banks pay highly close attention to the internal control, such as the improved supervision mechanics and severe punishment, which has improved the internal control management. However, in light of internal control environment, internal control system and policy construction, supervision and feedbacking mechanics, information disclosure and so on, the internal control of commercial bank needs future development and improvement.Agricultural Bank of China became a limited liability company in 2009. The paper takes Heze Branch as the research object. Combining theory and practice, the author focuses on the problems of internal control of Heze Branch by case study. In accordance with internal control theory and supervision requirements, the author gives the available suggestions to internal control.The paper includes six parts. The first part is the literature about internal control, theory of commercial bank risks. In the second part, the author introduces the internal control history of Heze Branch. The internal control problems and reasons of Heze Branch are stated in the third part. In the fourth part, it introduces the internal control characters and present conditions of commercial banks, and comes to some enlightenment. Combining the internal control problems of Heze Branch, the author puts forward the available suggestions to the internal control of commercial banks. The last part comes to conclusion based on theoretical and practical researches.The author finished the paper based on abundant investigation and cases. What's more, the author considers deeper system contradictions of Agricultural Bank of China, which can reflect the internal control condition and problems more precisely. The theory and practice are combined very well. In the end, the author proposes actual and feasible suggestions, which are meaningful to the total risk management of Agricultural Bank of China and to cope with the outside supervision.