The Fuzzy Evaluation Of Rural Cooperative Bank’s Loan Business Internal Control

Along with the changes in the continuous development of the current economic environment, domestic and international financial situation is becoming increasingly complex, the national macro-control agencies, according to the changes in the global and domestic economic environment, constantly adjust macroeconomic policy, industrial policy, credit policy, real estate policy, money market policy, especially the interest rates which constantly being opened up. All of these continue present new challenges to the financial institutions. If not timely adjust their business strategies to face ever-changing business environment, financial institutions will become confused, unable to meet the development requirements of the times.National macroeconomic policies are the regulation information, which is the benchmark for the company. An industry policy adjustment will changes the degree of business risk in this industry, larger or smaller, which needs the company to control by themselves. Rural financial institutions rooted in the rural market, whose foundation is weak, the ability to respond to the changes in the market is weak. This requires that rural financial institutions need to know the saying:the slow need to start early.Single model development of rural financial institutions, single source of income, and a higher dependence on interest incomes, the presence of these current situations have forced rural financial institutions must strengthen the management of credit assets. How to prevent credit risk is particularly important. Continue to tap the potential of the credit markets in rural areas, improve operational efficiency which needs to focus on credit risk, good internal control credit, timely summary evaluation, constantly adjusting the credit system.To solve the above problems, take rural cooperative banks for example, conducted a study of its credit business processes and internal control system, selected a part of the evaluation indicators, and evaluated the effectiveness of internal control, to provide a quantifiable basis for decision-makers. This paper is divided into six chapters.The first chapter starts with introduction. This chapter mainly states the background of the article, the significance of the topic, the general structure of the thesis, as well as the innovations and the weaknesses.The second chapter starts with literature review. This chapter states the main content of the literature. The Early scholars introduced the theory into the study of internal control, which is the advanced research method at the time. These research methods provide a quantitative and intuitive decision making for decision-makers.The third chapter starts with internal control theory. This chapter sets out the theory of internal control from four aspects. First, states the theoretical knowledge of internal control, pointed out that internal control is a constant feedback to improve, and constantly improve the dynamic process whose ultimate aim is to achieve business development, achieve the established business objectives. After reviewing the five phases theory of internal control:containment of internal control theory, the theory of internal control systems, internal controls structure theory, the overall framework of the theory of internal control and risk management of the overall framework of a comprehensive theory. Secondly, the study of the internal control system, reviewed the evolution of the process of internal control. Internal control development process of our country is divided into four phases:theory started accumulation, rapid development and overall development. Thirdly, states the commercial banks’ internal control evaluation theory, including internal control objectives, internal control principles and internal control evolutions. Finally, this part summarized the internal control evaluation methods and ultimately selected a fuzzy mathematical model as a carrier of internal control evaluation.The fourth chapter starts with the credit internal control of Hedong rural cooperative banks. This chapter states the credit businesses of Hedong rural cooperative banks, and its internal control system. Now, the bank builds a whole process risk management mode, which includes five centers:the survey center, the marketing center, the review center, the lending center, the post loan center. This part also states the whole process risk management mode’s objectives, targets, features and its significances.The fifth chapter starts with the fuzzy evaluation model construction of the Hedong rural cooperative banks. This part states the theory of the fuzzy math introduces the fuzzy theory into the internal control evaluation, at the same time, also discusses the practicality of this research.The sixth chapter starts with the evaluation of Hedong rural cooperative banks. This part constructs the evaluation factors set, the weight set and evaluation set which the evaluation need. This part takes the primary, secondary fuzzy evaluation validation, finally analysis the evaluation results of the research.