Research On Internal Control Of Joint-equity Commercial Bank In China

In recent years, Joint-equity Commercial Banks of China develop very quickly and have made a massive expansion in the scale. Along with the rising status in Chinese financial system, Joint-equity Commercial Banks have become an important force to promote economic development. However, due to its own management system, corporate governance and other factors, coupled with the lack of risk awareness and risk control ability, the existing level of internal control and the rapid expansion of the scale does not match in Joint-equity Commercial Banks. Influenced by the potential risks, financial cases occurred repeatedly, so that the financial system is threatened seriously. Therefore, to further strengthen the internal control has become the key of Joint-equity Commercial Banks to survival and development at present in our country.This article takes Evergrowing Bank which has occurred many financial events in recent years as the case to study, conducting the research to the internal control problems of Chinese Joint-stock Commercial Banks. Firstly, we introduced the development situation of Joint-equity Commercial Banks of China, Evergrowing Bank and the process of the case. Through the analysis of the case we found some problems about internal control in Evergrowing Bank, such as over-centralised power of the leadership, deficient execution about internal control system, and inefficient internal supervision etc. Then we pointed out the main causes of the problems, such as special historical attribute, weak risk awareness of stakeholders, unsound internal control mechanism etc. In view of the internal control problems of Evergrowing Bank, some ideas were putted forward from the senior management, shop-floor grunts and outside regulators of Evergrowing Bank to improve the internal control. At the same time, suggestions on the prevalent problems among Joint-equity Commercial Banks of China were made to reduce the incidence of financial cases, to keep China’s banking industry developing healthily and the financial order stable and normative.