To Analyze The Improvement Of Class Credit Business Internal Audit On G Commercial Bank

In recent years,along with the deepening of economic system reform,the form and way of “financial disintermediation” continues to develop,the internationalisation of RMB and the progress of marketization of interest rate continues to accelerate,and the central bank reduces interest so many times which let the interest-rate spread shrinking.Combined with the network financial severe shock,cost savings of domestic commercial banks only goes high not low.In the meantime,as economic has been in a new stage of “three period” superposition,financial regulation becomes more and more stringent,credit is more strictly controlled and horizontal competition is increasingly fierce,all of this make the pressure of competing for deposit and loaning as depending on the deposit still be there.To actively and effectively response to market environment change and challenge of tighter regulation policy,commercial banks gradually turned to class credit business which is light capital and involves large sums of money,so that to boost the transformation of revenue source from inherent,partial deposit interest rate differentials to diversify income.From then on,class credit business scale showed exponential growth situation and become earnings growth pole that drove the banking business performance increase rapidly under the new economic situation.In practice,kinds of class credit business innovation emerge in endlessly,have various types and complex structure design.What is more,class credit business often involve multiple departments,and the corresponding regulatory policy and system requirements also contains all aspects.So as to strengthen the internal audit toward access restrictions,approval,after examination and other risk control management of class credit business becomes particularly important.G Commercial Bank is one of the earliest established banks in our country,and has occupied the leading position in the field of traditional foreign trade.In recent ten years,G Commercial Bank speeded up the pace of innovation and development continuously,and successively established securities,funds,insurance,leasing subsidiary,which means it had a great advantage of full license operation and further enhanced its comprehensive management ability.Especially in the blue ocean area of investment banking,G Commercial Bank invested more resources,thereby having achieved remarkable results.Its class credit business revenue had exceeded 5 billion yuan during2016.At present,most commercial banks in China have set up a system of internal audit.However,commercial banks internal audit more focuses on the original loan business,while lacks a set of complete system and advanced technical method toward class credit business.Moreover,internal auditors have low level of professional and no strong sense of risk control in class credit business aspect.That make the class credit business internal audit often become ineffective conducts and the "three lines of defence" fail to play a crucial role,leading to the smooth operation of commercial banks be buried under huge risk of hidden dangers.Given all aspects of risk that the rapid growth of class credit business scale has brought to commercial banks and financial sector level,to further strengthen the commercial banks class credit business internal audit,and strictly regulate the internal risk control is of great significance.So,based on the principles of class credit business internal audit,this paper combined theory with practice and used case analysis method.Via the introduction of G Commercial Bank and the present situation of its class credit business internal audit personnel management,process,technology and method to start to analyze related problems that G Commercial Bank internal audit may have,this paper then discussed the main reasons leading to these problems.The effect of factors that influence G Commercial Bank class credit business internal audit quality are like following: Class credit business internal audit management system is not perfect;Internal auditors' professional level is low and they have no strong sense of risk control;Class credit business internal audit method and system lag behind;Rectification of problems that internal audit finds out isn't been verified to be effective and accountability to those who should responsible for these problems has become formalistic.Based on the in-depth analysis of root causes that related to the problems G Commercial Bank class credit business internal audit exist,this paper combined the reality of G Commercial Bank class credit business internal audit with good experience at home and abroad for reference,thus put forward some countermeasures to further strengthen class credit business internal audit on G Commercial Bank: First of all,strengthen the vertical management of the internal audit work and reporting system,regulate related departments job responsibilities,establish regional cross audit and regular exchange rotation mechanism,so as to promote internal audit independence;Secondly,regularly carry out class credit business training,train a team of class credit business internal audit professionals and provide professional promotion channel;Thirdly,establish internal audit independence database,perfect class credit business internal auditing method and system construction;At last,get to the bottom of problemsthat internal audit finds out as while as those who should take responsibility,and link it to their pay and promotion.Compared to current academic researches which mostly centered on commercial banks internal audit system,independence,effectiveness and risk-oriented internal auditing,internal audit of credit business,etc,this paper mainly discussed with commercial bank class credit business internal audit and put forward corresponding opinions and suggestions through the in-depth analysis of actual case.This is not only beneficial to improve commercial banks class credit business internal auditing system,help them better guard against risks,but also can play a role as a reference for other financial institutions which have similar kinds of business.