Research On Internal Control Of The Commercial Banks In China

With the development of the market economy in our country, the economic sectorsexisting makes the economy diversify. But it also increases the risk of enterprisedevelopment. Commercial banks as for-profit enterprises, are also faced with the risk of itsdevelopment. Especially since the financial crisis, many famous banks in the world havebankrupted, which makes the problems of the banks appear in the process of enterprisemanagement. The emergence of these problems, in addition to the changing externalenvironment, the impact of commercial bank's internal environment is also very important.So, more and more people are exerting emphasis on enterprise's internal control.Optimization of the internal control of commercial banks is important to deal with thechange of the market, improve risk strain capacity, and win in the fierce market. Internalcontrol, as a management method, is rooted in culture. Only in this way, can it beconducive to make the scientific and reasonable internal control system, and make up forthe lack of internal control on the system level, which makes the enterprise internal controlin a dynamic state forever. This article attempts to explore the five elements and establisha model of the internal control system for the commercial banks.Firstly, this article defines internal control, and then it introduces the five elements ofthe internal control. And it discusses the current situation and the main features of theinternal control in commercial banks. And it also explores the overall framework of theinternal control model in commercial banks, laying the foundation for constructing model.This paper mainly studies the basic theory of internal control and constructs three mainsystems of internal control in the commercial banks. It mainly researches how to improvebank's internal control work, which makes the commercial banks internal control workhave certain value and optimize the operation of commercial banks. This article isstudying the internal control system through the internal control environment, riskassessment, control activities measures, information communication and supervisionsystem research. The model is applied into the case of H bank in the paper. Finally it putsforward the constructive suggestions, which shows the feasibility and scientific nature.