The Legal System Of Internal Control Of Commercial Banks

With the development of financial innovation and economic globalization, the commercialbanks are undergoing historical changes. The issue on internal controls of commercial banksbecomes more crucial. This paper tries to cut in through the legal system of internal controls inbanking, deeply analyzes the corporate governance structure of commercial banks on the basisof theories of commercial banks. This paper also explores the design of the legal system oninternal controls in banking, and focuses on relative legislation up to date.Through the study of existent legal system, this paper analyzes the general rules onsupervision of commercial banks, and endeavors to sum up the trend of the internalcontrols .The framework of internal controls of our country is brought forward by summing-upthe success of internal controls of international society and foreign countries.This paper is divided into six chapters. First, introduces the basic questions of internalcontrols in banking and relation with legal regulation;second, discusses the theoretical basis oninternal controls, and goes deep into it through economic and legal theory;third, analyzes thecorporate governance structure of commercial banks and its impacts;fourth, puts forward thesystem design of internal controls through the study of Framework of Internal Controls ofBanking Organizations of Basel Committee;fifth, sums up the experience and lessons of Britishand American countries through reviewing on their legal system and practices of internalcontrols in banking;sixth, explores the present legislation of China, by analyzing theinsufficiency of China compared with western countries, and advances the measures forimproving the legislations of China.