Vision, On The Construction Of The Commercial Banks Within The Credit Risk Control System

Internal control system about credit operational risk of commercial banks aimed to ensure credit business sustained developing and control credit operational risk. It is summation of adoptive organizations, methods and procedures that it takes process of credit operation and management and operational activities as control object, standardizes credit operation and sets the risk control point in reason, uses all control factors. That commercial banks develop credit business must be based on established internal control system about credit operational risk. Owing to diversified reason, the state-owned commercial banks hold a large amount of non-performing assets; the task of risk management and control on existent and incremental assets is very hard. Therefore the work to establish and improve internal control system about credit operational risk is urgent.Internal control system about credit operational risk includes organization and management system, operational institution, authorization and award institution, information communication system, check and supervision institution and so on. According to the principles constituted by Basle Committee on banking supervision and our country's laws and regulations on internal control system, referring to west commercial banks' experiences, our state-owned commercial banks should make up internal control system about credit operational risk in term of validity, prudence, completeness, efficiency and independence. This article mainly conceives internal control system about credit operational risk of commercial banks: setting up three step-upsupervision lines in order, the first line is loan department, the second line is risk management department, the third line is internal audit department. Banks should carry out corresponding risk management and control, improve institution of posts' responsibility and authorization and award institution in order to realize reasonable segregation of duties, effective right restrict, efficient cooperation and division. Besides banks ought to exert the credit management information system and all sorts of check and audit measures to supervise every operational approach so to guard each risk points. In addition, banks should use assess and bonus means to strengthen inspiriting function of internal control system.This article tables a proposal on internal control system about credit operational risk of our state-owned commercial banks by expounding operational flow design, organization and configuration and post setting, credit management information system, internal check and audit four aspects.