Company Customer Credit Risk Internal Control Of Shanghai Pudong Development Bank Shenyang Branch

As inflation getting severer and monetary policy getting more strengthened,Chinese commercial banks are facing money supply shortage, enterprises harsherfinancing situations. Meanwhile, default risk emerges. The economy of China isslowing down. Under this situation, the internal control of Chinese commercial banksis with more importance. Whether the internal control will stand the test of thissituation is a challenge.Shanghai Pudong Development Bank Shenyang Branch is one of the most activemedium sized commercial banks and has been contributing to the local economysince its establishment. Thanks for the reform and other effort made recent years,SPD Bank Shenyang Branch has made significant progress on internal control systemconstruction and acquired experience in this very area. Starting with the credit riskunder the tightened monetary policies background, my paper looks into the internalcontrol framework concerning corporate banking of SPD Bank Shenyang Branch.Stressing on the current situation, flaws and possible improvement measures ofcorporate banking internal control, I used measure techniques and generalmanagement concepts to elaborate on the features, structure and evaluation ofcorporate clients’ internal control.The structure of this paper is: part one explains the general meaning andsignificance of this topic; part two introduces the current situation, features, structureand evaluation process of corporate banking internal control at SPD Bank ShenyangBranch; part three explores the causes of flaws in the internal control system; part four offers improvement measures on the very internal control system.Based on the analysis above, I proposed the goal of risk management as assuregrowth and ward off risk and asserted that this goal can be broken down into fouraspects. Firstly, improve the product line management. Secondly, read the industrytrend and stay within those comply with the economic policies. Thirdly, tune riskpreference accordingly timely. I also proposed measures in this paper on fundmonitoring, risk information system construction, risk management culture, humanresource development, hoping to help SPD Bank Shenyang Branch, and othercommercial banks as well, improving internal control performance, mitigating creditrisk and maintaining fast-paced growth.