China's Commercial Banks' Internal Control Situation And Countermeasure Analysis

Based on firsthand data of check and investigation on the internal control of commercial bank, thorough analysis is hereby made on present situation of internal control of commercial bank of our nation and its generating origin. It is concluded that the fundamental crux of state-owned commercial bank is due to failure to establish system of managing independently and self-restricting, having no clear operation aim even politicalizing value norms which is easy to result in morality risk; ineffective management and low work efficiency are the factors in system influencing effectiveness of internal control; more emphasis being put on business development, no attention being paid on setting up and perfecting internal control system, and inability of the internal control system to completely meet needs of taking precautions against and removing finance risk, cautious operation as well as supervision by central bank are the concrete expressions of unperfected internal control system; and incompleteness of encouragement organism, lack of staff's enthusiasm in work and sense of responsibility are the most terrible potential obstacles for setting up perfect internal control organism. And on the basis of thorough analysis of the present situation of internal control of commercial bank of our nation, further analysis of policies, which are practical and operational, on perfecting internal control of commercial bank of our nation has been conducted herein in virtue of drawing on practices of other nations and referring to Baser's Kernel Principals and our nation's Guide Principals, concluding that the internal control system of commercial bank featuring risk control is the base to ensure moderate management of commercial bank, secure depositor's interest as well as steady whole finance system. The internal control system of commercial bank of our nation should aim at controlling risk and developing soundly, and being cautious, complete, timely, independent and effective in principle, thus achieving the end of "safety and efficiency".