Research On The Internal Control Of Rural Commercial Bank Of Hunan Province

Rural finance is one of the main component of the rural economy, developing the rural finance played an important role in rural standard of living,construction, economy, and stability and development of the society, with the innovation of Chinese financial system, the reform and listing of the state-owned Banks’ shareholding system, the reform of city credit cooperatives to city commercial Banks, foreign-funded banks and Chinese-foreign equity joint banks pour into China, a large number of emerging joint-stock commercial Banks spring up constantly, the development of rural finance is not exception, rural credit cooperatives reform to rural commercial bank.In order to broaden the development in the financial industry, to adapt to changes in the economy, to survive in the fierce financial competition, and continue to grow stronger, rural credit cooperatives have a dramatic shareholding system reform, transforming into rural commercial banks which have a clear property right, standard institution, correct orientation, and advanced concept.In May5,2010, the first rural commercial bank--Liuyang agri-businesses Bank was established in Hunan province. in April2014,there are21rural credit cooperatives that transformed into rural commercial banks in hunan province. After the restructuring of the rural commercial banks, their comprehensive strength and anti-risk capability have obvious enhancement, their development of business have also been sped up.However after a period of time of operation, restructured rural commercial banks in Hunan province still face various kinds of difficulties and problems,such as unscientific operating management, low operational efficiency, high proportion of non-performing assets,and high internal financial risk. The main reason of those problems is that the internal control system is unscientific,therefore, reforming and improving the internal control system of Hunan rural commercial banks is the key to regulate operation of rural commercial bank, guard against all kinds of financial risk, and keep stable and efficient development.From the perspective of internal control in combination with accounting knowledge, this paper will choose Hunan rural commercial bank as the research object, and Liuyang agri-businesses bank as a case. It aims to analyze the current situation and problems of Hunan rural commercial bank internal control, and to find out the causes. Thereby, it can provide some concrete countermeasures from following three aspects:to perfect the internal accounting control system, to strengthen the internal control system of risk prevention, and to strengthen the internal audit system, hopefully, the internal control system of Hunan rural commercial bank can be perfect.