A Study On The Internal Control Strategy Of X Bank 's Operating Cost

The Operating Expenses means the various expenses that occur during the product sales, offering labor services and any other business activities, including the exterior cost of advertising, transferring, insurance, exhibition, and also the interior cost, including staff salary, office supply, travelling expense, depreciation expense, repairing expense and consumption cost. The Operating Expenses is the vital index that represent the cost control ability in modern commercial banking. It, and the expenses compliance, reflect the ability of the commercial bank management, and make effect of the development as well. In nowadays, as market competition intensifies, the commercial bank has been inputting plenty of cost to expanse the market due to the pressure. In 2014, the cost-income ratio of four state-owned banks all exceed in 26%, the absolute profits exceed in 100 billion. It shows that the efficiency of the operating expenses directly affect the development of the commercial banks. Especially in recent years, the exterior supervision has been enhancing, modern manage requirement and standard has being promoted to the new level. That all require the bank managers changing their development strategy, choosing the efficient and legal strategies to improve the expense management in legal and efficient ways. This paper deeply discuss the expense control methods and strategy of the commercial bank. It include the budget system of the operating expenses, project approval, reimbursement procedure, control standard and interior inspection, etc.This paper analysis the status of the expense control strategy in domestic commercial banks with the documentary research method, comparative analysis method and individual case research method. It discuss the expense control status and problems of certain branch of the domestic bank, and use the advanced domestic and overseas experience as reference. The objective is to present some new thoughts and solutions for this certain branch to enhance their expense control level.Although we have made some remarkable progress and achievement, there will be a tough work to enhance the expense control level of the commercial banks in our country that could satisfy the control and supervision need in the new ages. Especially in the delicacy management and the compliance interior control aspects. It is important penetrating the concept of cost and benefit and compliance to all the processes of the management. Only investigating, repairing, expanding could do well to the management and the procedure. Simultaneously, making full use of the information technology in the cost management could also enhance the managing capability and the competitiveness in the way of interior management.