A Study On Problems Of Internal Control Of Chinese Commercial Banks

As the development of finance,there are more challenges and opportunities for commercial banks.However,the bank crisis is the byproduct of the fast development that alarms us.The inner control theories of our country's banks have been developed very lately,but the insufficiency of this system has lead to many vicious events,which influenced all the banks including the top four state owned banks.There are more complicated potential problems in the immature commercial banks.Consequently,it is more important for banks to combine the building of inner control and new environment and technology.Under the current situation,combining our banks' outer and inner reality seems quite significant for us.In this thesis,I will dive into the current situation of our banks and many series of problems cause by lack of inner control,in order to build up a better bank system,which will ensure the better,and complete inner control of our country's commercial bank.The main contents and views:Chapter 1.The first chapter is an introduction.sate the backgrounds,research meaning,research skeleton,research method,and creative and insufficient of this thesis.This chapter intends to explain the importance of this research,and state the contents,structure and skeleton of this research paper.Chapter 2,This is literature review.I reviewed the theories both domestic and abroad.Then I explained the definition,factors and economic value of commercial banks' inner control.This is the fundamental of this thesis.Chapter 3,I analyzed the current situation of and problems existed in our commercial banks' inner control based on cases.I catalog it into five aspects,1,inner control environment;2,crisis reorganization and evaluation;3,inner control policies;4,communication and feedback;5,inner audit.All of these analyses support my logic in Chapter 5.Chapter 4,this is the case study.First,I explained the case according to theChina post bank's current situation,development history,and business goal and target customers.And then I pointed out the problems existed in China post.Case studies have in common,and also there are particularities.Finally,from the needs of PSBC,the needs of China's economic development,and for other banks to provide theoretical and empirical support,summed up the significance of establishment and improvement of internal control of PSBC.Chapter 5,this is the problem-solving part.Based on Chapter 3 and 4,I stated the methods for improving the banks' inner control policies.The use of the principle of management,information theory,cybernetics and the balanced scorecard,economic added value and other technical means improve the internal control system of China's commercial banks.The improvements include:improve the internal control environment,improve risk identification and assessment system,improve their internal control activities,improve the exchange of information and feedback systems,improve internal control audit.The main measures include:use the balanced scorecard to design strategies to' control the target,improve the performance evaluation system of commercial banks in China by balanced scorecard and economic value added;introduce the concept of management,design a customer-centric bank management processes and business process system.Chapter 6 is the conclusion and expectation.I concluded the main points of this thesis and pointed out the research direction for the future.Predicted the future the problems faced by China's banks internal control.And at last I provide a personal opinion for future research directions of the internal control of commercial banks in China.The main contribution of this article:In this article,I used the management tools,such as Enterprise Balance Mark Card and Economic Value Added,which will make the commercial banks' inner control more reasonable and Pay more attention to the bank between the various elements within the equilibrium relationship and the strategic objective.In addition,I choose China post in the case study,which has strong targeted and representative.The business direction of China post is focus on the "three rural",and it offers mortgage to the mid-sized enterprises and in the primary level of development.To focus on the Survival Condition of Small and Medium-SizedEnterprises is China's stratagem in future development of banks.Apart from that,it also important to adopt effective measures to steadily narrow the gap between private enterprise and Big state-owned enterprises.The proposed framework according as the internal control construction problems of postal savings bank is of certain reference value for the most of developing bank in China.Most importantly,this paper emphasizes the internal control construction philosophy,from "customer-oriented" and "staffs" two sides,it analysis the meaning of "people first"."Customer oriented" emphasize that banks,service should meet the customers,needs.Also the banks should strengthen its build up of inner control and ensure that all staff's activity,hence it's necessary to strengthen the inner-control and promote the development of culture.In order to Ensure that employees' enthusiasm and initiative that the Incentive System also should be perfected...