Research On The Internal Control Of China CITIC Bank Lanzhou Branch Bank's Acceptance Bill Business

In recent years,China's financial industry is in a stage of development and transformation.The traditional interest margin profit model of the financial industry has been broken,and commercial Banks have the dominant position in the financial industry,so they should not only focus on the deposit and loan business,but also try to transform their business models and strategies.Intermediary business is a crucial step in the transformation of commercial Banks,and acceptance bill business,as the main source of intermediary business income,provides a strong competitiveness for commercial Banks to diversify their business model based on intermediary business.In addition,the healthy development of the financial industry also plays an important role in social stability and affects the effective operation of the market economy.Commercial bank acceptance bill business,as the main force of bank bill business,develops rapidly,but related risk events keep happening,which has become one of the areas with high risk of bank business.In 2016 alone,China citic bank lanzhou branch,agricultural bank of China Beijing branch,guangdong development bank,bank of ningbo,bank of tianjin and other five large Banks broke out bill risk cases,involving more than one billion yuan,which is amazing.Although the specific reasons of these events are different,they all reflect the following phenomena: commercial Banks pay insufficient attention to the risk control of bill business;The internal system itself has loopholes and defects;The internal control system has unreasonable design and inadequate implementation.But contrary to these phenomena,in the actual bill trading market,bank acceptance bill business has been considered as a low-risk financing business.It is also for this reason that in order to adapt to the development of business,the approval procedures and operational procedures of commercial Banks have been repeatedly simplified.In fact,most of the commercial Banks' internal control regulations on this business do not exist independently,and most of the relevant measures are nested in the control system of other businesses,which has become the incentive for the frequent occurrence of high-risk events.Compared with other bill businesses,there are many aspects of bank acceptance bill business,including application,issuance,discount,acceptance,etc.,all of which are prone to fraud,and the slightest carelessness will lead to risks.In 2016,China citic bank lanzhou branch's bank acceptance risk incident brokeout,which directly caused the decline of China citic bank's stock price.In order to cooperate with the public security investigation,other branches in China suspended the bank acceptance business,which had a huge negative impact on the business development of China citic bank.The internal control problem involved in this case involves all links of bank acceptance business and most departments of the bank,which is representative of the inadequacy of internal control of bill business of commercial Banks in China.Therefore,this case is selected as the research object in this paper.Based on the five elements of COSO's internal control and the guidance on overall risk management of banking financial institutions(CBRC September 2016),this paper analyzes the status quo and existing problems of internal control of China citic bank's acceptance bill business,and finds out relevant reasons.On the basis of my own research and the achievements of previous studies,I have sorted out the internal control work of the bank with the internship experience accumulated during the postgraduate period,and finally put forward relevant countermeasures.This paper consists of the following six parts:The first part briefly introduces the research status of bank acceptance bill business and the research method of this paper.The second part mainly includes the status quo of bank acceptance business and relevant theories of internal control,including objectives,contents and basic methods.The third part elaborates the risk event.The fourth part puts forward the current internal control problems of citic bank acceptance,such as the employees in private transactions,operation is not standard,audit become a mere formality,the target customer orientation is not accurate and internal inspection mechanism did not play a role,etc.,and analyzes the relevant reasons in view of these questions,such as professional ethics controls insufficiency,the paper deals with incomplete information is not timely,review the program execution,insufficient of mediation on risk assessment and internal fresh measures such as incomplete.The fifth part aims at these problems,this paper also gives the corresponding measures to improve internal control: first,optimize the control environment.Specifically,it includes the cultivation of professional ethics,the construction of internal control culture and the improvement of organizational structure.Second,improve risk assessment.Specifically,it includes the establishment of the collateralevaluation procedure,the emphasis on the risk assessment of termination,and the promotion of peer mutual evaluation.Third,regulate control activities.Specifically,it includes the control of risk exposure,the improvement of delivery and custody system,and the definition of department responsibilities.Fourth,attach importance to information communication.This includes establishing a unified management system,perfecting the information disclosure system and perfecting the emergency plan.Fifth,strengthen internal supervision.Specifically,it includes the implementation of self-inspection mechanism,the implementation of post rotation system,and the determination of internal audit independence.In addition,it also gives some Suggestions to improve the external environment.The sixth part summarizes the conclusion of this paper and puts forward the research prospect.In a word,under the new situation that rapid development of bank acceptance business is accompanied by frequent risk events,internal control has a significant impact on the development of bank acceptance business.The Banks should be able to optimize the design of the design of the interior design of the business,and to make sure that the business is methodical and to contribute to the development of the banking business.