Research On Internal Control Mechanisms Of One Bank

In the context of economic globalization,the financial market has developed rapidly since 1990s.As the main body of the financial industry,commercial banks play a significant role in economic development.Since the shareholdir system reform of state-owned commercial banks in 2004,the financial reform of commercial banks has been carried out steadily.China's state-owned banks accordingly accelerated the transformation from state-owned specialized banks to state-owned commercial banks,resulting in increasingly fierce competition between commercial banks.With the development of economy and the increase of market demands,domestic commercial banks follow the international trend,constantly expand their business,increase their market shares,develop new markets and expand their scale to occupy the market.As the government has eased the restrictions on market access of foreign banks and allowed the establishment of private banks,domestic commercial banks are confronted with unprecedented competition pressure.Meanwhile,due to the increasingly austere international economic situation,the downward trend of domestic and international economy,the severe slowdown of domestic real economy,the ramping of such illegal and criminal activities as private high-interest loans and illegal fund-raising and the constant increase of various frauds aiming at commercial banks,the business of commercial banks is confronted with more risks.Nowadays,while commercial banks must face all kinds of severe challenges and operating pressure caused by complicated and changing external situations,they also need to avoid internal risk.As a kind of management method aiming at guaranteeing effective management,assets safety and the truth and accuracy of accounting data,internal control is of crucial importance for the sound development of commercial banks.However,as current internal risk control of commercial banks is still imperfect,the internal risk control system fails to give full play to its function,result in the occasional occurrence of all kinds of risk events.To promote better development of commercial banks and give full play to the role of commercial banks in promoting national economic development,commercial banks need to effectively manage internal control.In this context,an effective internal control mechanism is required to uarantee the steady and sound development of cnmmercial banks With the worsening of the internal and external environment of commercial banks,domestic commercial banks are confronted with growing financial risk,which raises higher demand for internal control.How to establish an effective internal control mechanism is an important task confronted by commercial banks.In this context,it is of theoretical significance and practical significance for the steady and sound development of commercial banks to explore existing problems and optimization scheme of internal control mechanism based on the analysis of the advantages and disadvantages of current internal control mechanism of commercial banks.Based on the theories of internal control,this paper mainly focuses on the internal(?)ntrol mechanism of a commercial bank.Through analyzing the actual cases of the commercial bank,this paper summarizes the advantages and disadvantages of the internal control mechanism of the commercial bank reflected by these cases and refers to successful internal control methods at home and abroad to conduct pointed discussion on how on optimize and improve the internal control mechanism of the commercial bank,improve the operation capability of the commercial bank,prevent and avoid financial risks and promote the steady development of the commercial bank.