Study On The Defects And Countermeasures Of Internal Control Of The Bank Of Communications

With the volatility of financial market and the deepening of financial globalization,more and more financial crisis have begun to emerge.In the national financial system,commercial banks have always played an important role,not only to assume functions such as funds raise,funds transfer and settlement,issuance of loans and create economic benefits,but also have effects such as to improve the efficiency of the use of funds,to guide the flow of money and regulate the total social demand for funds and so on.In the current situation,to take effective internal control not only can ensure the sound operation of the banking system,but also can help commercial banks to improve core competitiveness.Therefore,it is clear that it has become an urgent problem to identify and grasp the uncertainties arising from the development of state-owned commercial bank and take effective measures to establish and improve their internal control system.This paper takes the internal control of the bank as the main research object,analyzes the current theory of internal control and the internal control evaluation theory of commercial banks,combs the concept of internal control of commercial banks and the research status at home and abroad,and adopts the method of qualitative and quantitative to summarize the internal control management of the Bank of Communications.Based on above,this paper uses the case analysis method to take the Bank of Communications of a certain province as an example,and analyzes the existing problems and defects of its internal control management.Based on this,the author puts forward the countermeasures to improve the management level of the internal control system of the Bank and to provide protection for future development.Through the research,this paper argues that the main problems of internal control of the Bank of Communications include: internal control concept is not in place;internal control has blind spots;there is lack of the responsibility of internal control constraints;internal audit functions are not fully play.The main reasons for the internal control problems are as follows: firstly,the organizational structure is irrational,there is no cross-staggered overturning control mechanism;secondly,the management department is not clear,the overall function of internal control failed to give full play;thirdly,because of lack of management and don't follow the regulations,make the internal control system become a mere formality;fourthly,internal control management level is different among jurisdiction agencies.According to the above analysis,this paper puts forward the following six countermeasures: strengthening internal control culture construction,creating an internal control environment which is according to law compliance and operation well;establishing a perfect and comprehensive risk management system and internal control system;improving the risk control mechanism and strengthening the audit supervision and correction of the internal control;refining the evaluation and assessment of the internal control;rational using internal control and compliance management tools.