Research On Internal Audit Of Credit Risk Of Commercial Banks In China

In recent years,commercial banks have closed down and even affected the entire financial market due to their poor risk management.The problem of bank credit in China is more serious.There are frequent commercial bank credit violations in the announcements of the Audit Commission and the announcement of the Banking Regulatory Commission.At present,various commercial banks have established an internal audit system,but the bank's credit risk level remains high.The non-performing loan ratio 'and non-performing loan amount of China's commercial banks have gradually climbed since 2012 and once approached the 2%risk warning line.The case object of this paper,the credit risk of Agricultural Bank of China,is the most serious among the five major state-owned banks.At the same time,the internal audit of ABC is relatively late and not mature.The internal audit issue will affect the development of ABC's credit business.The research questions in this paper are as follows:(1)What are the problems in the credit business of ABC?(2)Is there a loophole in internal auditing,and what problems in its internal audit lead to credit business risks?(3)How to improve the credit risk in internal audit?Most of the existing literature focuses on the credit risk management of commercial banks and the internal audit of the overall situation of commercial banks.Few studies combine the bank's own situation,from the credit business risk data and bank credit business,to study its internal audit deficiencies and how to Optimize internal auditing.With the changes in China's economic policies and the adjustment of the external macro-economy,for the special financial industry of commercial banks,the internal audit mode and method adopted by the original banks can not fully meet the needs of the economic situation and business status,and further exploration is needed.Internal audit participates in the new model of credit business risk management.Based on the credit risk of commercial banks,this paper first collects the relevant theories of internal audit and risk management,refers to the previous research on ABC,and analyzes the relationship between internal audit and credit risk and risk management.Secondly,the case of agricultural behavior,This paper analyzes the hidden dangers of ABC's credit business,combines the internal and external factors of ABC,and points out the defects of internal audit participation in ABC's credit business management.Finally,it provides specific suggestions for ABC internal audit and designs the internal audit procedures of ABC's credit link for the defects.Other commercial banks' internal audit and internal audit participate in credit risk management to provide reference for the healthy development of China's commercial banks.The research findings in this paper:(1)Although ABC has its own risk management system and accepts external supervision by various financial regulatory agencies,ABC's credit risk is still very large,requiring internal audit to help control credit risk;(2)even within ABC's internal The audit covers the credit business,but it cannot achieve the purpose of reducing non-performing loans.It finds problems in its internal audit by contacting the ABC credit business and internal and external factors.(3)It can reduce the credit risk of commercial banks by improving the internal audit of commercial banks.Improve the level of risk management.The characteristics and application significance of this paper lies in the combination of the internal audit and risk management theory,the statistical analysis of the overall credit business and internal audit of China's commercial banks,and then the credit internal audit of the individual case of ABC,so that the case is persuaded force.Taking the internal audit of ABC as a breakthrough,it has reference value for the internal audit of credit business of China's commercial banks,and provides credit to reduce credit risk by providing recommendations.