Department Of Business Administration Financial Management

Internal control of commercial banks has become a major project which risk management of China’s commercial banks. Internal control has become a key factor of achievement of business purpose. But Chinese economic environment in the speed growth, commercial banks had to face to the order of profit maximization, on the other hand, ensure that the enterprise internal management in order to catch up the pace of world economy, the end result is that the whole enterprise of uneven development.Of course, not only domestic, foreign banks have occurred because of the incomplete internal control which led to the failure results. For example, the British Bahrain bank collapse, Bank of Japan and Japan’s collapse, and the Southeast Asian financial crisis occurred frequently. Investigate its reason is as follows, weak awareness of risk management, lack of comprehensive risk evaluation, risk assessment technology is backward, the incomplete information of science and technology, the internal auditing effectiveness etc..In this paper, according to the internal control the failure of foreign and excellent examples, expounds the internal control of commercial banks in the process to be found and need to solve the problem, and through the actual data of Chinese each big commercial bank, make quantitative analysis of relationship between internal control and financial indicators of commercial banks, and analyzes the relationship which Chinese environment of internal control and financial purpose. And in at the end of the article, in order to improve the internal control of commercial bank of China, so as to realize the enterprise strategic target of the constructive suggestions.The innovation of this paper is, through the quantitative correlation between Chinese internal control environment and the analysis of financial data, and find the Chinese commercial banks lack of internal control, and provide constructive suggestions to improve the internal control environment.