Research On Value Creation Of Listed Commercial Banks Internal Control Framework

With the further development of opening to the outside world policy，Listed commercialBanks in China are facing more and more difficult challenge. In addition to the development andexpansion of all kinds of domestic Banks, foreign Banks also have landed in China capitalmarket，Such competition for listed commercial Banks in China is unprecedented. At present,from the point of the performance of the listed commercial Banks, the overall competition abilityis not strong, One of the reasons lead to this problem lies in the execution quality of internalcontrol is not high. Commercial Banks internal control is the foundation of the whole bankingsystem construction, is the key factor to guard against financial risk, to ensure that thecommercial Banks and even the entire financial system develop steadily. If the foundationinstability, Building will eventually fall. Under the guidance of the internal control basic normswith its guidance and the commercial Banks internal control guidelines, Listed commercial Banksin China is committed to self-improvement work of internal control, and set the goal to protectthe safety of bank assets, risk prevention, etc. Internal control should have the function, butshould not limited to these functions, his ultimate goal should be to help commercial Bankscontinue to create value, maximizing the enterprise value. Therefore, this paper proposes to buildthe value creation of listed commercial Banks internal control framework, makes commercialBanks internal control framework target transfer to value creation, and obtain long-termdevelopment in the fierce competition environment.First of all, this article induces and summarizes the domestic and foreign related researchachievements of internal control, reviews the internal control construction’s achievements ofcommercial Banks, and defines the concept associated with this article. Secondly, on the one hand,through data investigation to understand current status of China’s listed commercial Banksinternal control execution, find out the problems and analyzes the reason for these problems, Onthe other hand,by means of empirical study, confirms the listed commercial Banks internalcontrol framework has the ability to improve enterprise value. Through the study of these twoaspects illustrates the necessity and feasibility of value creation of listed commercial Banksinternal control framework construction. Later, on the basis of summarizing the existing internalcontrol framework to build the value creation of listed commercial Banks internal controlframework. The framework consists of seven elements, respectively is: control environment,budget management, risk management, control activities, information communication, supervision and inspection, the performance evaluation. When this article introduces the specificconnotation and implementation method of the seven elements in chapter5, introduces someadvanced value management theory, such as the theory of value chain, cost management, thebalanced scorecard. Process optimization on the bank value chain, in ensuring business propertysecurity, financial information is reliable, and risk prevention, at the same time, to improve thewhole value creation ability of listed commercial Banks. The bank value maximization hasbecome the consensus of most of the listed commercial Banks, if value creation can be theguiding ideology of enterprise management, believe that a lot of problems can be resolved, andcan largely enhance the international competitiveness of China’s listed commercial Banks. Finally,the article puts forward some suggestions to ensure framework implementation smoothly.Framework itself is necessary to perfect, but lack of appropriate environment will be wastedeffort, therefore, must have a valid policy, system, personnel, external supervision and so onmeasures to cooperate, to maximize the framework for implementation and application.