Research On The Credit Risk Internal Control Of W Branch

Credit business has always been the main source of profit of commercial banks, however, the credit risk brought by credit business is a "double-edged sword", on the one hand it can enhance the competitiveness of commercial banks, on the other hand, may also cause economic and reputation losses. With the increase of commercial banks and competitions, to guard against credit risk is always the key task of the banking industry, and the perfect internal control system can effectively prevent and control the credit risk. Although the construction of the internal control system of credit risk has been the focus of academic research, many domestic and foreign experts also contributed a lot, and commercial bank in our country started later than other countries, the application of internal control system in Chinese commercial banks is not enough.Based on the W branch as the object of this study, firstly, it analyzed the internal control status of the bank's credit risk by learning its basic information of credit business, credit information management system, risk management system, internal audit and supervision situation. Secondly, the paper did a comprehensive analysis of the internal control of credit risk in the implementation process with control environment, risk assessment, control activities, information transmission channels and the internal supervision and other issues by combining with the relevant contents of W branch's Non-performing loans (NPLS) cases and COSO internal control structure. Lastly, regarding real cases and specific problems of internal control, this paper put forward below suggestions as:to improve the internal control environment, to strengthen the internal control activities, to construct scientific risk identification system, to improve information management system and to perfect internal control supervision mechanism. The suggestions which have been put forward by analyzing W branch's credit risk internal control issue in this paper are to standardize and strengthen the bank's credit risk internal control mechanisms and risk resisting ability, and also have great practical significance in enhancing the competitiveness among the local banking industry. Meanwhile, I hope the suggestions and countermeasures proposed in this paper can give references for other commercial banks, and make contributions to improving credit risk internal control for commercial banks in China.