Rssearch On The Control Activities Based On The Credit Flow Of Urban Commercial Banks

At the moment,there is a mismatch between supply and demand in our country’s macroeconomic environment that cannot be ignored:excess production capacity of low-end products and insufficient supply of high-end products.Under the institutional background of supply-side structural reform and deleveraging,it has become an inevitable trend for commercial Banks to tighten lending and increase the disposal of non-performing loans.Urban commercial Banks play an indispensable role in China’s financial system.They provide financial services for local smes,drive regional economic growth,and play a decisive role in regional economic construction.In recent years,urban commercial Banks have developed rapidly,and there are many challenges in the process of facing opportunities and rapid development.How to comprehensively improve the internal control activities related to the credit process is particularly important.The author,using the case analysis in M city commercial Banks,for example,by understanding the Banks before the credit business credit,credit and credit in the process after the status quo,found the bank’s 2017 annual report disclosure of credit business category five classification information is invalid,will be a lot of the overdue days should be classified as suspicious and loss of loan optimization as normal,lead to bad loans carrying amount is the actual amount decreased by 64.98%,optimization of credit assets,by not compliance means lead to part of the statement appears to be the fine quality of credit assets,and optimization of credit assets exceed the time limit for a long time,is expected to have a higher risk of the future will not be repaid,The misstatement of this financial information may affect the decision of the users of the statement.The analysis shows that the purpose of the bank’s credit business is to underestimate the risk of credit assets,optimize the quality of credit assets and reduce the provision of impairment of credit assets.The credit business treatment of commercial Banks in M city does not conform to the bank’s internal rules and regulations,the control activities of credit process are not implemented in compliance,and the internal control fails.The internal control failure mechanism is worth further investigation.In the process of exploration,the author firstly combed the M in front of the city commercial bank credit business credit,credit and credit in the process after the status quo,through further select the existing several major irregularities case of credit inquiry found that the bank is credit process control activities were not thoroughly,supervision,not rigorous,overdue loans concentrated in a particular branch,concentrated in the small micro enterprise,one-sided pursuit of credit performance,disregard the credit risk problem.Based on the credit process problems found,the author explores the reasons for the failure of internal control of the credit system from four perspectives:pre-loan review,in-loan approval,post-loan management and comprehensive credit control activity management.Finally,this paper puts forward practical Suggestions for M city commercial Banks from the four aspects of pre-loan,loan,post-loan and comprehensive management,and improves the credit process control activity management of M city commercial Banks.Based on M city commercial bank as an example,this paper is based on credit process,with its existing problems for source control activities,to explore the failure mechanism of internal control,the credit system to recognize and respond to credit risk,optimize the environment of the credit risk management,perfecting the credit risk management loophole,for the same type city commercial bank credit management process control activities has a certain reference and reference.