Research On Internal Control Of Regional Branches Of Commercial Banks

With the rapid development of economy and society,the number of commercial banks in our country is increasing,and its business scale is doubling,which has a good development trend.However,some banks lack reasonable internal control system or have defects in internal control system,which can not keep up with the speed of development.As a result,it leads to the negative trend of risk control,asset quality and development speed of commercial banks.At the same time,the profit-seeking attribute of commercial banks also allows some employees to take the risk without internal control constraints or lack of restraint,and they go to the marsh of irregularities,which results in the frequent occurrence of major cases in the banking industry.Faced with severe situation and many risks,internal control,as a key link of commercial banks' soft power,will help them to build an immune system,so as to ensure the safe and steady operation of business development and daily operation,and effectively prevent and defuse business risks,which can make it invincible in the fierce competition.Therefore,it is urgent to study the internal control situation of commercial banks and help them to establish and improve the internal control system.In this paper,it takes the internal control of the regional branch of commercial bank as the research object,adopts the literature research method,the case analysis method and the deductive induction method,mainly takes the internal control integration framework theory of COSO as the main body,introduces the control theory,organizational behavior theory and contingency theory as a supplement.By referring to the guidelines of the Guidelines of Commercial Bank Control and combining commercial bank's internal control system of G bank,it studies the current situation of K Branch's internal control,and finds out the key to the problem in this paper.For example,the compliance awareness is not strong enough,the organizational structure is flawed,the role of the professional committee is not fully played,the quality of the internal control personnel is not high enough,the foresight and predictive nature of risk control is not strong enough,and the risk assessment is not broad and deep enough,the management of employee behavior is not in place,the quantitative evaluation of comprehensive risk factors of loans is insufficient,the details of internal control activities are not comprehensive and deep enough,the channels of obtaining information are relatively narrow,the time cost of information exchange is high,and the use of information is not sufficient,as well as the supervision and restraint,and it lacks the effectiveness in the application of evaluation results of internal control.As for these problems,it puts forward some corresponding countermeasures in this paper,including creating a good internal control compliance environment,perfecting the internal control organization structure and system,giving full play to the role of the professional committee,and improving the quality of the internal control personnel,enhancing the forward-looking and predictive nature of risk control,expanding the breadth and depth of risk assessment,strengthening the control of employee behavior,quantifying the comprehensive risk factors of loans,and paying comprehensive and in-depth attention to the details of internal control activities,widening the channels of information acquisition,shortening the time cost of information transmission,improving the utilization rate of information,strengthening supervision and constraint management and making full use of the evaluation results of internal control.K branches can be referenced.Finally,it summarizes and puts forward some suggestions for improving the internal control system of regional branches of commercial banks,which mainly includes establishing a clear organizational structure and establishing a sound internal control system,building a good internal control culture,implementing a robust human resources policy,analyzing complex and changeable regional situation,building a clear risk management organization,establishing a sound risk identification and evaluation system,formulating a comprehensive risk response strategy,establishing a clear risk management responsibility system,establishing an incompatible position separation system,formulating a reasonable authorization examination and approval system,establishing a sound accounting system,forming a complete property protection mechanism,developing forward-looking budget management,establishing an effective operation analysis system,setting up a scientific performance appraisal system,establishing a major risk early warning mechanism and handling emergency response mechanism,developping a complete customer complaint processing process,establishing a strict anti money laundering system,building a safe and fast information system,establishing a sound information security and confidentiality system,establishing an effective information quality assurance mechanism,forming an efficient information communication mechanism,implementing the information disclosure system of the head office,setting up an unimpeded reporting and complaint system,establishing a supervision and inspection system for internal control,forming a sound internal control reporting system,constructing effective internal control evaluation system,implementing the internal control defect identification standard of head office,implementing a rigorous internal control rectification mechanism and establishing an efficient internal control evaluation results application mechanism,so as to provide reference for internal control construction of regional branches of commercial banks.