Risk Prevention For Non-perf Orming Loans Of Business Department Of Abc Jilin Province Branch Of The Agricultural Bank Of China B Ased On Internal Control

With the accelerated revolving of the economic wheel,the banking industry is growing with a crushing force.However,many dangerous risks are hidden behind the “radiance”.Therefore,it is an irresistible trend to keep improving internal control construction,enhance supervision and management and avoid risks before they really occur.As the alliance combining the urban and rural areas and based on “agriculture,farmer and rural area”,Agricultural Bank of China(ABC)is subject to prominent risks in operation and management due to its special environmental and industrial positioning.As shown in the 2015 performance report disclosed by listed Chinese banks,bad loans of all major banks have gone up.Among all those banks,ABC's bad loan ratio has reached 2.02%,ranking the first,turning itself into the first national commercial bank with a bad loan ratio above 2%.Under the complicated and intricate macro economic environment,firstly,signs of operation difficulties in all listed banks have gradually shown.Secondly,the increased bad loan ratio directly leads to pressure on asset quality.Main reason for such situation is the serious deficiency in internal risk prevention.Through practical work,concentrated study and personal experience at ABC,the author tries to summarize relevant experience,and proposes some ideas and opinions with high feasibility and value of practical reference,on the basis of considering relevant theories of internal bank control.ABC branches are everywhere in urban and rural areas.Its business operation scope is growing rapidly like a broadening network and its business turnover is surging up,making an enormous contribution to China's financial cause.However,ABC is facing much higher environmental pressure and more operational challenges than other commercial banks.The main reason is its poor internal control system.The gradual growth of bad loan overcasts the banking industry development undoubtedly.A more worrisome point is that the internal defect of the banking industry is bound to cause further increase of bad loan ratio with the growing demands under the context of economic development.Therefore,in the perspective of internal control,the study and analysis of existing problems related to bad loan at the Business Department of ABC Jilin Province Branch,and the identification of its disadvantages and loopholes in internal management,are of great significance.Taking the Business Department of ABC Jilin Province Branch as the research subject,based on the internal control theory,this article starts with the high bad loan ratio problem in this department,conducts a questionnaire survey among relevant personnel,summarizes statistical results,and further analyzes reasons for the increased bad loan ratio in the perspective of internal control,then summarizes the following countermeasures and suggestions for the Business Department of ABC Jiling Province Branch: 1.To build a sound control environment.2.To establish a complete set of risk management system.3.To improve the activity control system.4.To straighten up the information communication channels.5.To enhance supervision and management intensity.6.To improve internal control process.