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Construction And Improvement Of The Internal Control System In China's Commercial Banks

Posted on:2002-12-09Degree:MasterType:Thesis
Country:ChinaCandidate:D H BianFull Text:PDF
GTID:2206360062475296Subject:Money and Banking
Abstract/Summary:PDF Full Text Request
Internal control is included in the category of management science. It helps an organization improve the possibility of achieving goals through organizing, managing, assessing and adjusting operational activities. And the efficient internal control system is the basis and precondition of commercial banks' safe and systematic operation. In the western countries, those famous commercial banks all work hard on theoretical research and utilization of internal control and try to establish a strict and efficient internal control system in their organizations. In China we are only at the beginning in this field and the Internal control system is not completely established in many commercial banks. There are some phenomena like that: 1 researched slowly and no systematic theory1 the two key system -ight-balancing and risk-controlling system urgent to improve1 current internal control system poorly implemented and sometime disturbed by government authority i Internal auditing department is lack of independence. EtcSo our commercial banks are not strong enough in achieving then operational targets and avoiding financial risk and have to face more arc more bad assets and unanticipated hazards. It' s urgent to establish c complete internal control system in order to improve our commercial banks' management. That is the reason why this article is written. By integrating the main principles and development history of internal control and thu western experience and analysis of our commercial banks' control system, this article trys to provide some advice and methods in establishing our commercial bank internal control system.This paper includes four parts. Part One briefly introduces the theor/ of internal control. Part Two studies the success and failure of some western commercial banks in their internal control establishment. Part Three describes the present situation and analyzes the reason of invalidation of internal control system. Part Four gives some improving advice and measures aimed at the weakness of internal control system.Part three and Part Four are the core of the paper. Part three firstly affirms the preliminary achievement of our commercial banks in internal control establishment. Then points out the weakness and poor implementation of it. At last emphatically analyzes the main reasons for inefficiency of internal control system' such external factors as traditional planning economic system, rough economic increasing methods, way of reform, central bank supervising system and internal reasons as financial property system, correspondent problems, profit-hunting thought, etc.Part Four tries to give out some advice and methods in order to improve and reform our commercial banks internal control system. Mainly included: 1 Deepen economic system reform; optimize the environment of implementing internal control system efficiently.1 Stress to control bank credit risk and construct risk control system. By adopting the measures, we can set up reasonable environment and establish efficient internal control system. Then we can implement the internal control system efficiently and correspond with the financial system reform in our country and quicken the process of our commercial banks' modernization.
Keywords/Search Tags:Commercial Bank Internal Control Financial Supervision, Financial risk, internal audit
PDF Full Text Request
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