Research On Internal Control Execution Of Nationalized Commercial Bank

With the domestic economic development gradually into the new high-speed stage,since the net profit growth rate of four nationalized commercial banks in 2015 for the first time significantly reduced to less than one percent,marking the end of nationalized commercial banks5 more than ten years of "golden age".Accompanied by decline in profit growth at the same time are the continued rise in the scale of non-performing loans and the frequent occurrence of risk events.In the current economic environment,the implementation of internal control in place,are related to whether nationalized banks can effectively carry out risk prevention,and then successfully achieve the goal of transformation and development.In recent years,the management level and operational efficiency of nationalized commercial banks have been significantly improved,but the risk cases caused by the failure of internal control or the improper implementation of internal control are also endless.The outbreak of bill case in Agricultural Bank of China at the beginning of 2016 was not only in huge amount,but also had wide range of impact on entire banking related business.The main contents of this paper can be summarized as follows:First of all,on the basis of the basic theory of internal comrol and relevant concepts,combing the domestic and foreign scholars' views in recent years to obtain new research ideas and conclusions,select less concerned process of implementation to carry out specialized research.Secondly,it reviews and concludes the new achievements in the establishment,improvement and operation of nationalized banks' internal control.It focuses on the analysis of the existing problems and causes,such as the problems of the implementation of the poor environment;performance pressure;lack of implementation in innovation activities leading to the future accumulated risk.And then from the five aspects of the internal control framework proposed improvements.Finally,based on the analysis of the specific case of the bill case occurred in Agricultural Bank of China,this paper puts forward some suggestions on how to improve the internal control of the Agricultural Bank from the five aspects:first,it is necessary to change the business development and assessment concept,and take the long-term development interests as the first.Second,we should continue to pay attention to the construction of compliance culture,the violation should be eliminated in the embryonic stage.The third is to pay more attention to the control activities which are implemented.In addition,it also should prevent innovative financial products from becoming a "runaway horse".Finally,the Agricultural Bank of China should enhance its information disclosure,trying to prevent the emergence of similar events causing stock price crash situation.