Research On The Internal Control Of Small And Medium-sized Joint-stock Commercial Banks In China

With the development of the global economy,the financial industry has also developed.At present,the uncertainty of the global economic development prospect is increasing,which affects the development of the financial industry.The financial risk events occur frequently,and the banking risk increases.As an important part of the financial system,the internal control system of bank is not perfect,risk control is not reasonable,poor management and other situations directly lead to the occurrence of bank crisis.In the 1990s,international commercial banks,such as Bahrain Bank and Hainan Development Bank of China went bankrupt.Influenced by the United States financial crisis,Lehman Brothers Bank went bankrupt at the beginning of the 21st century.In 2019,Germany Bank announced they will restructure in order to be reborn,Bank of China insurance and The supervisory and administrative committee announced to takeover Baoshang Bank Limited.In the past 30 years,small and medium-sized joint-stock commercial banks have played a leading role in the financial reform and innovation of China.As the forerunner,small and medium-sized joint-stock banks have actively explored the ways and means of financial reform and innovation,and have achieved successful experience,but there are also shortcomings,such as imperfect internal control,inadequate risk control,weak corporate governance and so on.Therefore,the urgent task of small and medium-sized joint-stock commercial banks is to optimize and perfect the internal control system,improve the corporate governance structure,further improve and perfect the risk evaluation and assessment system,strengthen the ability of internal control management,prevent and resolve financial risks,and promote the standardization of the banking industry.Healthy development,better serve the real economy and people's life,promote the development of high quality of our economy.Based on the theory of internal control,this paper first analyzes and compares the internal control system of joint-stock commercial banks at home and abroad,and obtains the enlightenment to the internal control of small and medium-sized joint-stock commercial banks.Secondly,combined with the five elements of COSO,this paper analyzes the case of Baoshang Bank Limited,and points out the internal control defects of Baoshang Bank Limited.Finally,Through the case analysis of Baoshang Bank Limited,this paper puts forward some suggestions on the four levels of government and external supervision organization,management,internal audit department and external audit institution respectively,perfecting the internal control management of small and medium-sized joint-stock commercial banks,preventing and defusing financial risks,promoting the standardized and healthy development of banking industry,better serving the real economy and people's life,and promoting the high-quality development of our economy.