Research On Internal Control Of The Risk In Acceptance Bill Transaction In Chinese Ommercial Banks

Commercial banks play dominated role in the financial system of our country. The acceptance bill financing has received a growing favor from traditional enterprises and financial institutions owing to its simple procedure, low cost and off balance-sheet property. The acceptance bill business developed swiftly in our country. The acceptance bill loan has become a significant origin of the banks’profit. Coupled with the fast development of acceptance bill business, a lot of commercial banks entered into the bill market while the regulation was weak and the profit was big. However, due to the weak capability of risk control in some commercial banks, a large number of legal cases of acceptance bill emerged and injured the reputation of banks. In recent years, commercial banks enhanced their internal control on acceptance bills compelled by the requirement of regulation and bank operation. But there is still many defects need improve.The parent bank plays roles as designer, practice director and monitor in commercial banks’internal control. Therefore, it is indispensable in the internal control framework. In this article, I want to make a research on the internal risk control of acceptance bill transaction in the Chinese commercial banks based on the knowledge of management, accounting and auditing and the theories of internal control and financial risk management. After analyzing the environment and present situation of the internal control of the risk of acceptance bill in Chinese commercial banks, I raise a series of scientific measures to improve the present defects from the angel of parent bank by borrowing the experience of banks in developed countries or areas.In detail, there are five parts in my article.In first part, illustrate the background and significance, summarize the article past about this thesis, and demonstrate the structure, innovations and deficiencies of this paper.In second part, analyze the theories about the internal control of the risk in acceptance bill transaction in commercial banks. First, introduce the basic theories of control, internal control and the commercial banks’internal control. And then analyze the risk in acceptance bill transaction in commercial banks. At last illustrate the internal control framework of the risk in acceptance bill transaction in commercial banks.In third part, demonstrate the present situation, defects and its reason of the internal control of the acceptance bill transaction in Chinese commercial banks. At first, point out the defects from two perspectives, the internal and external, by analyzing the current situation. Then, demonstrate my inference by an example of a commercial bank.In forth part, make the international comparison of bill risk control. Elaborate the features and practices of three developed countries:the USA the UK, the Germany; and the Hong Kong and Taiwan area. And then, summarized the enlightenments that are suited our country.In fifth part, raise the suggestions of improvement on internal control of the acceptance bill transaction in Chinese commercial banks face to the defects in internal control and environment of the commercial banks in our country. The suggestions include the principals, the operation standards and the regulation methods.