Research On Credit Business Of Z Bank Chengdu Branch For Micro Enterprise Internal Control

Nowadays,micro and small enterprises have developed into a powerful economy that can no longer be neglected by financial institutions.Micro and small enterprises have already shown their unparalleled vitality on imagination and creativity.These businesses have undoubtedly demonstrated the greatest capability,especially in terms of innovation promotion.In social development,they also played a critical role.However,micro and small enterprises are relatively weak.Because of their own characteristics,they are vulnerable in risk-resistance.Further more,information asymmetric increases the risk of adverse choice,which makes commercial banks face greater risk in lending to these businesses.It is worthy to study what commercial banks should do to strengthen their internal control from the inside,reduce their operation,market and credit risks,and improve their management level.The methods applied in this dissertation include modern commercial bank's internal control and risk management principles and procedures,case studies,field surveys,inductive analyses and comparative analyses.Taking Z bank Chengdu Branch's credit business with micro and small enterprises as the study object,the author discusses the problems and causes of the internal control system and credit process of the micro and small credit business of Z bank Chengdu branch,puts forward the ideas and countermeasures of improving and suggesting.The main content and framework:Chapter One: basic theory and literature review.The author reviews the basic theories and developments of internal control,the concepts of COSO internal control framework and enterprise risk management framework,and the current status of both domestic and overseas research on the internal control.The review lays a sound foundation for future study.Chapter Two: review of the current status and development of the credit businesses related to both micro and small enterprises and commercial bank's micro enterprises business;explanation of the difficulty for micro and small enterprises to receive loans.The above-mentioned studies provide a theoretical basis for the analysis of micro and small enterprises credit business of Z Bank Chengdu Branch.Chapter Three: illustration of the basic situation of small micro enterprise loans by example of credit business of Z Bank Chengdu Branch.Based on real examples,the thesis analyzes the characteristics of the current internal control system of the pre-loan investigation,the loan processing and post-loan stage,with a focus on credit procedure.The analysis provides the theoretical basis for further studies.Based on the studies conducted in Chapter Three,in Chapter Four,the author analyzes the reasons for the existing defects in the internal control mechanism of micro and small enterprises credit business of Z Bank Chengdu Branch.The analysis is conducted from the perspective of credit procedure and based on the theory of the five elements of COSO internal control.Chapter Five,in accordance with the current situation of micro and small enterprises credit business of Z Bank Chengdu Branch,the author analyzes the problems of the internal control and offers suggestions for improvement.Chapter Six: summary and the prospect of future research.The contribution of this dissertation mainly lies in following perspectives.The author uses the theory of the five elements of COSO internal control.The author analyzes the key links(pre-loan,during and post-loaning)of the internal control of credit business for micro and small enterprises after Z Bank finished their business process reengineering.The author finds out the deficiencies of the retail credit business which include organization chart,specialization,risk assessment and culture construction.Through a systematic analysis of control environment,risk assessment,control activities,information and communication and monitoring,the author believes that in order to establish a better internal control environment,Z Bank should strengthen the awareness of internal control among the staff,improve the performance appraisal system and retail credit business organization chart.Besides,Z Bank should improve the risk assessment measures and establish comprehensive risk management system.Again,Z Bank should strengthen the management of the loan process and focus on key links of the process.It should perfect the communication channels and establish multi-dimensional monitoring system.The dissertation can help to improve the internal control system of micro and small enterprises credit business of Z Bank Chengdu Branch,which is of great significance to the practice of internal control of credit business of micro and small enterprises in commercial banks.