Case Research On Internal Control Of D City Commercial Bank

Financial security is prerequisite for the stable operation of national economic conditions, as a main part of Chinese financial sector, commercial banks play a decisive role on the economic and financial security. It needs us pay attention to financial security every moment that so many financial cases occurred in China and abroad, one of the most important tasks is to make a good job on internal control of commercial banks. Internal control, however, from studies at home and abroad, there are some prevalence weaknesses, such as theoretical studies started later and the targeted practice poorer, therefore, the mission of studying internal control of commercial banks can not be relaxed.In this thesis, D city commercial bank serves as an analytic object, expanding the case studying on internal control. D city commercial bank represents the small size city commercial banks of China, these commercial banks have the characteristic of small medium size, fewer employees and weak in strength, at a certain extent, these weaknesses intensify risks of small banks, some criminals exactly take advantage of this "small" characteristic, drilling low to prevent loopholes small banks. For this reason, it is particularly necessary to study internal control of small city commercial bank.This thesis describes the foreign authority's internal control theory and research related to our internal control, combine with the process of building internal control in D City Commercial Bank, summarize its internal control problems, then identify the reason from several points of view, the final part is the corresponding suggestions to improve.This thesis is divided into six parts, the main parts are from part three to part five:PartⅠ-Introduction, introduces the topics of this background, significance, research status. PartⅡ-to support the theory, describes the COSO and the Basel Committee's achievements and Chinese provisions on commercial banks'internal control.PartⅢ-D City Commercial bank's internal control situation, a brief introduction from the whole D City Commercial Bank, Commercial Bank and then set D for the construction of the internal control efforts and results achieved.PartⅣ-finding and analysing problems in D Commercial bank's internal control, from the superficial to find D City Commercial Bank on the internal control problems and then identify the cardinal causes of these problems.Problems including:poor awareness of internal control, inadequate internal control mechanisms, a large potential risks of credit, fake data. These problems are caused by the following reasons:adverse internal control environment, risk assessment methods are backward, communication channels are not blocked, the internal audit function is not fully played out, do not attach importance to "human" role, it is the imperfections in these areas led to D bank in the course of business there such kind of problems.PartⅤ-recommendations to complete D City Commercial Bank's internal control. The causes for the comprehensive proposal to solve the problem for the fundamental, rather than starting from the surface of the problem behavior, and causes the corresponding recommended the following five areas:creating a good internal control environment, make the activities perfect, improve risk assessment tools, clear communication channels strengthen the internal audit function to strengthen the training of its staff.PartⅥ- conclusion, namely that the contribution of this research and study limitations.I hope this research would help D City Commercial Bank on the improvement of internal control and risk prevention. Also expect other city commercial banks could do a better job on their internal control and management.