Environment And Supervision Of Cross-strait Banking Internal Control Comparative Study

The role of Financial Institutions in the whole economic activities are acting as the intermediary, its funds mainly comes from the populace deposit, but its use to supply Government, Enterprises and Individuals economic activities, therefore the stable and orderly financial market is the important strength for the promotion of state economy development. Also, the Financial Institutions bear the liability of social welfare and public, therefore, besides the pursue profit, the goal of Financial Institutions still had to dual attention to assets liquidity and debt service ability. Once a financial institution found operation problem, it might widespread the affects to the whole economic activity and create the serious social problem within a very short time span, and receive lots of attention from populaces. Therefore, as a financial institution, to strength the Internal Control System becomes an only and positive way to raise the business efficiency and effect, also to reduce the mistake and corrupts.Due to the size as well as the activities of the Financial Institutions getting broad, the organization is more and more numerous and disorderly, the management is unable to do every personally, thus, a set of perfect internal control system to display the management achievements, also can continue forever to manage is more necessary and important. During the past 10 years, the two side authorities across the Taiwan Strait had separately formulated the laws and regulations about the banking industry control system and the standard. Such as the Taiwan authority passed the banking law amendment in October, 2000 to stipulate explicitly the bank should establish the internal control and the internal auditing system. In July, 2007, China Banking Regulatory Commission also issued the