Internal Control Problems Study Of Our Country’s Rural Commercial Bank

With the gradual improvement of China’s opening level, financial sector is gradually taking the pace to go abroad. As an important part of the financial sector, bank industry is facing the international and domestic competitive environment which is unprecedented complex. The financial risk is gradually increasing. It can be said that it is important to establish and improve a scientific and effective internal control system and ensure its enforcement.Because it can enhance the ability to withstand the risks of the banking sector.Rural commercial bank is a kind of main financial institution of our country’s rural areas. It is an integral part of the financial system, and it has a great influence. Rural commercial banks provide strong financial support in many ways. It can promote agricultural efficiency. It also can increase farmers’ income and improve rural development. So it has positive influence. But in most parts of rural areas, commercial bank has a problem that the non-performing assets ratio is high. Although the reasons are complex, it must contain the factor of internal control.Because it is fundamental and substantial. Other factors have their effects indirectly by the factor of internal control. Main financing facility in financial sector is a high-risk industry. The risks of financial sector and the risks of regional and national finance are inseparable. So countries in the world have a common goal that we should strengthen the supervision and management of financial institutions and we should strengthen internal controls.This paper specifically for a study of internal control issues that is about China’s rural commercial banks. It tried to reveal the problems of internal control.And we can establish an effective internal control system of rural commercial bank gradually.This paper includes six parts: The first part is an introduction. It includes the background and significance of the subject. It includes a review of domestic and foreign research. It also includes the main contents of the papers and some innovations. In the second part, the paper writes something about the norms and theoretical basis about internal control.In the third part, it includes the general analysis of internal control of rural commercial banks.Including the elements and framework of internal control of the rural commercial banks, the particularity analysis of the rural commercial banks, and the analysis of internal control of the rural commercial banks. These works pave the way for the research of internal control issues of the GT rural commercial bank. The fourth part is the case analysis, this paper selected GT rural commercial bank which is in Shandong as a case. It is on the basis of the descriptive analysis which is about the framework of the internal control of GT rural commercial bank. This article refers to some small cases of my practice in the bank. It noted some specific problems of its internal control. Through two examples, it illustrates the serious consequences which are caused by the irregularities of the internal control. Finally, it proposed some optimization measures. The fifth part is the analysis of the trend of internal control which is about the GT rural commercial bank. The sixth part is the conclusion of the study and the prospects of the research.