Study On The Credit Business Internal Control System In Henan Province Agricultural Bank W Branch

The advent of the era of "quasi marketization of interest rate" will lead to Chinese banking sector interest rate spreads narrowing. The establishment of a diversified financial system will make commercial banks difficultly absorb capital at a low cost; Long-time separate operation makes our banking cannot improve intermediary business revenue significantly in the short term, commercial banks still need to rely on traditional credit business income in the future. Under the condition that capital cost will be higher and "financial disintermediation" has been rapidly developed, in order to consolidate its net profit growth, commercial banks are likely to expand credit scale or increase the proportion of risky credit assets. Ineffective management of credit risk may result in loss of credit assets, which is bad for commercial banks to make profit, even causes banking crisis and affects social stability. In response to the credit risk management challenges caused by the reform of interest rate marketization, as an effective means of managing commercial banks’credit risk, internal control deserves further research. After being listed, Agricultural Bank of China implements differentiated management policy and puts forward higher request for credit business and credit risk management in its grass-roots branches, on the one hand, grass-roots branches need to provide a more powerful loan support for regional economic development; on the other hand, grass-roots branches should contribute to improvement of ABC’s current situation on credit risk control. As interest rate marketization reform developing, under the pressure of ABC’s management policy, it is necessary to study the credit business internal control in grass-roots branches of ABC, analyzing the found problems and putting forward corresponding suggestions for improvement.Depending on the theory of child elements of credit business internal control, which is developed from the five elements of internal control, this paper selects Henan province agricultural bank W branch as an example, analyzes W branch’s existing problems when carrying out the credit business internal control system, and puts forward corresponding improvement suggestions.This paper is divided into six chapters. The first chapter is introduction, introduces the research background and purpose of this paper, research methods and content, main research points of scholars both at home and abroad. The second chapter is credit business internal control theory, summarizes the objectives and elements of credit business internal control by comparing the main frameworks of internal control. The third chapter introduces the current situation of credit business and internal control system of W branch. The fourth chapter evaluates W bank’s situation of carrying out internal control system by the means of questionnaire survey and analysis of the cases, and deeply analyzes the problems form the perspective of internal control elements. The fifth chapter puts forward suggestions to improve W bank’s problems, which are based on some advanced experience. The sixth chapter is the research conclusion and research prospect.This paper uses the case study method. By field surveying, we understand the credit business settings of W bank, the operation process, CMS system and so on. By using interviews, questionnaires, typical cases analyzing, the combination of overall and individual analysis, qualitative and quantitative analysis, we analyze the implementation situation of W bank’s credit business internal control.