| The main business of a commercial bank is lending,which is also risky when borrowers are not reliable.To run successfully,a commercial bank must strictly control credit related risks;the most effective way to manage credit related risk is to lend with credit business internal control.Credit business internal control could guarantee a bank to meet its revenue target,and further help the bank to grow healthily.For the past decades,China's banking business has developed a considerable amount of internal control regulations and infrastructures based on past banking management practice.However,there are still potential issues to be more meticulously analyzed for banks to perform well under market competition and risks brought by uncertainty.During the expansion of a commercial bank business,the management level oftentimes only look at on the scale and profitability,and does not spend effort in developing the bank's internal control.There are countless cases for bank's stuff to violate the regulations,which eventually brought loses to the bank.Therefore,in order to reliably grow and expand,it is necessary for a bank to develop comprehensive and effective internal control regulations.For the last a few years,the local economy of XH commercial bank continued to grow rapidly;this leads to a corresponding steady expansion of its business.Consequently,researching XH bank's loaning business internal control is practically meaningful.This article reviews the research insights of loan business internal control of commercial banks from China and from many other foreign countries using paper reviews combined with scientific survey.The review addresses five aspects regarding recognition and evaluation,control activity,information and communication as well as internal audit.The analysis results bring advice for improving XH commercial bank's lending business internal control.Additionally,this article could be valuable as a reference for other Chinese commercial banks. |
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