Study On Internal Control Optimization Of Agricultural Bank Of China XY Branch Peasant Household Credit Business

Since the birth of commercial banks,the debate about the importance between internal control compliance and business development has never stopped.The purpose of internal control compliance is to avoid risks,and business development is to expand and occupy the market.It seems that both of them are for the better development of the banks.But,in recent years,whether it is the collapse of Bahrain Bank,or the related party's illegal operation transactions of Hengfeng Bank,both are caused by internal control failure.Therefore,accompanied by the development of commercial banks,internal control plays an increasingly important role in the survival and development of the banks.Credit as the main business of commercial banks,whether the loan can be recovered on time and maintain the level matters the management level of the bank.As one of the important characteristics of the Agricultural Bank of the business,especially for the county branch in the agricultural county,the quality of peasant households credit quality will seriously affect the bank's non-performing loan rate.Therefore,the improvement the internal control of peasant households credit business will not only help to reduce the non-performing loan ratio,to improve the bank's operating performance,but also important to the sustainable development of the Agricultural Bank.This paper chooses the Agricultural Bank of China XY branch to reduce the threshold of peasant household's loan since 2009,which effectively solves the problem of shortage of funds in the production and life of peasant households.However,from the credit quality of the bank from 2013 to 2015,almost all of the non-performing loans are from peasant household loans.Although this phenomenon is affected by external factors,but the author hold that the high rate of non-performing loans to peasant households,from the external environment analysis of non-performing loans is due to one-sided,it should start from the internal control.As the internal control of commercial banks is an important means of self-management,so the improvement of the internal control of credit business should be the primary task of banks to improve their own supervision.In particular,the amount of loans to peasant households is relatively small compared with corporate loans,the number is more vulnerable to the policy environment and climate characteristics.Agricultural Bank of China XY branch should strive to improve its internal control.It should control the risk factors reduced to the acceptable range,strict implementation of the peasant household credit business processes,improve the quality of loans and enhance the overall strength of the bank.This paper mainly uses the Basel Accord,and the main methods of internal control of commercial bank credit business.From the perspective of case study,it is found that the credit branch of Agricultural Bank of China XY branch has some certain degrees of problem before,within and after the loans.To solve the problems,this paper aims to mining deep-seated reasons from the following seven aspects.They are the organizational structure is too simple,the transmission of peasant households in remote areas is not smooth,and the human resources are not enough,the management of the credit account manager is too weak,the credit system of the peasant household is weak,the process is not standardized,the internal control system is not perfect and the organizational structure is too simple.Finally,the author puts forward some suggestions on how to change the current situation of peasant household's credit business of Agricultural Bank of China XY branch,and to reduce the non-performing loan ratio.The research of this paper is helpful to improve the current situation of the internal control of peasant household's credit business of Agricultural Bank of China XY branch,to prevent the risk of peasant household's credit,to standardize the operation process of credit personnel and to minimize the non-performing loan due to internal reasons.This will benefit the further improvement of the level of business.At the same time,this paper takes the county-level sub-branch as the research object,and makes a beneficial attempt to optimize the internal control system of the credit business of the county-level sub-branch of the commercial bank,and improves the internal control of the county-level sub-branch of the agricultural bank and the rural credit cooperatives Has a certain reference value.