Industrial And Commercial Bank Of China Internal Control Research

Based on the existing commercial bank's internal control theory and the existing international research literature, this paper intends to make an in-depth theoretical analysis on the internal control mechanism of China's commercial banks and tries to explain and illustrate the existing internal control mechanisms from the theoretical level. Meanwhile, this paper will cite the case of internal control risk of the Industrial and Commercial Bank of China as a supplement to reflect the operating conditions and problems on internal control mechanism of China's commercial banks, which will enhance the reality and scientifical-ness of the theoretical analysis. Then the paper will study the problem by expansion and vertical depth analysis.As for the problems and shortcomings, this paper will further find solutions from the theoretical basis. By illustrating the existed cases, this paper proposes some practical measures to solve these problems, thereby achieving an analysis paradigm of one correspondence problem analysis and proposed countermeasures. In research methods, this paper refers to the foreign theory and then processes to form the localized features. It can be said that foreign scholars have studied the theory of internal control mechanisms in banks for a long time and therefore have formed a relatively complete theoretical system. However in China, the economy is experiencing a transition from planned economy to market economy, as a result, there is very little theory that can be used for direct reference and it is difficult to deal with the increasing complex domestic economic and financial environment. Therefore, this paper attempts to integrate China's domestic elements to realize the localization of foreign theories and construct suitable internal control mechanism theory for the operation of the Industrial and Commercial Bank of China. In the specific implementation process, two points are taken into account: First, the reference of the existing foreign theory. Foreign economic and financial environment is built on the basis of the well developed market economies, so how to reasonably and scientifically use them in China's commercial banking system and then effectively explain the problem is the most pressing issue in this study. Second, select the appropriate cases. In this paper, the selection of cases must be representative and convincing so that we can analyze the current problems more directly on internal control mechanism of the Industrial and Commercial Bank of China. This paper takes the following measures to solve the two possible problems: Firstly, the paper makes a fully analysis on the relevant foreign theory and literature , figures out the theory suitable to the economic environment of China and then tries to testify the scientifical-ness of relevant theory. Secondly, in the process of selecting the cases, this paper sorts and analyzes the typical internal control risk cases of the Industrial and Commercial Bank of China in recent years and picks out the cases that the current internal control mechanism can't solve, then the paper attempts to employ the advanced foreign theory to explain and control those cases.The last part of the article focuses to put forward the development strategies to improve the internal control system of the Industrial and Commercial Bank of China, to establish a culture of local characteristics and further develop the internal control environment in order to perfect the internal control mechanism of the Industrial and Commercial Bank of China.