Research On Evaluation Of A Commercial Banks' Internal Control

Internal control comes into being with the bank's business activities and management.It is a dynamic mechanism of interlocking,supervision and restriction in the process of business operation.After China's accession to the WTO,foreign commercial banks began to flood into China.With the development of the economic globalization and the reform of Chinese socialist market economy,Chinese listed commercial banks face various competition risks from both domestic and international financial markets.Therefore,if A commercial bank want to succeed in the future market competition,on one hand,they need to continuously explore and innovate new business areas;on the other hand,they need to establish a scientific and effective internal control system to effectively prevent and resolve the potential business risks,enhance their comprehensive competitiveness and realize their rapid development.Therefore,this topic has certain theoretical value and practical significance.Based on the meaning of internal control of commercial bank and related theories,the paper has constructed an evaluation index system of commercial bank's internal control,which includes 5 first-class indexes,16 second-class indexes.Then,the paper has evaluated the internal control level of A commercial banks in China by using AHP and fuzzy comprehensive evaluation method.The results show that the internal control level of A commercial bank is low,and the average score of internal supervision is the lowest.The average score of control activities is the highest.The internal environment,risk assessment,information and communication are at an intermediate level,indicating that A commercial bank still has deficiencies in those areas.There are significant differences among second-class indexes.Finally,the paper puts forward some countermeasures and suggestions to improve the internal control lever of A commercial bank.The first is to optimize the internal control environment;the second is to strengthen risk assessment;the third is to optimization of internal control activities;the fourth is to establish a good information and communication mechanism;the fifth is to strengthen internal supervision.