China's Commercial Banks' Internal Control Of The Construction Of The Status Quo And Its Improvement Study

Effective internal controls are the foundation of safe and stable banking. There are many fraud cases breaking out in recent years, making the internal control more important.The modern commercial bank environment becomes more varied and complex as the growing global economic integration and continuous economic reform of China, and the risk encountered by our banks is become more greater than any other time. The efficient and stable regulation of internal control is significant for the banking today. We must improve the ability of internal control to face the challenges of variably surrounding risk. However, the construction of internal control is still weak in our banks, how to strengthen and improve the internal control system is the focus and difficulty of China's Commercial Banks.This research is defined to discuss how to establish and improve the internal control system on Chinese Commercial bank. First, the paper states the recent economic environment of world to show how important our commercial bank to establish a complete, effective, proper internal control system. And then introduces the definition, principle of internal control, and also the development of internal control theory in the world. Second, the paper analyzes deeply the actuality and problems of our commercial bank's internal control system from both internal side and external side. Third, the paper gives the suggestions and improvements on internal control system from the five aspects of internal control theory. In addition, among the paper, the Jerome Kerviel's case will be taken as an example to restate again the importance of internal control and to help our Commercial bank to perfect their internal control.