The Research About Internal Control Of Commercial Bank A

Since China's economy entered the new normal.New changes in financial supervision,economic situation,technological change,transformation and development have provided new requirements for banks' internal control.Firstly,"easy access and strict management" has become a new idea for current regulatory agencies.With the sharp increase in the intensity and amount of regulatory penalties,compliance pressure and the cost of compliance of the banking industry have risen significantly.Secondly,the economic growth has gradually declined.Commercial banks are facing the following problems,such as: increasing pressure on asset quality control,increasing diversification of external fraud risks,and serious risks of internal control cases.How to build an effective internal control system has become a problem faced by commercial banks in the operations.This thesis takes A bank as the research object.It studies the current situation of the internal control Commercial of Bank A,combines the risk cases of Bank A in recent years,benchmarks the regulatory requirements of thebank.The final purpose is to find out the causes of risk events and the problems of internal control,and then put forward the countermeasures and suggestions for optimizing the internal control construction of Bank A.The thesis is divided into fiveparts.The first part is the introduction,which describes the research background and puts forward the research significance.It means that,as new internal and external environment changes provide new requirements for banks' internal control under the new normal,Bank A is in severe risk environment and meeting increasing risk challenges.It requires Bank A to establish a set of business scale-matched internal control management system.The second part provides a theoretical foundations for the case study of Bank A's internal control which contains the introduction of the internal control theory of commercial banks,risk management theory,the relationship between internal control and risk management,the characteristics and limitations of internal control of commercial banks and etc.The third part briefly describes the current status of Bank A's internal control work.This part refers to the "Internal Control of Commercial Banks",from the five aspects of internal control: responsibilities,measures,guarantees,evaluations,and supervision,analyzes the management status of Bank A,and analysis the current situation of bank A.This part point out problems of BankA,which are: insufficient internal control system,unclear division of responsibilities,failure to establish a scientific and reasonable risk identification and assessment mechanism,insufficient information system support,insufficient setting and application of internal control evaluation indicators,vague identification standards for defects,non-uniform Internal control inspection and rectification mechanism.Further more,it also reveals the consequences of poor internal control of Bank A through case analysis and supervision penalties.The causes of internal control problems were analyzed from the aspects of poor internal control environment,insufficient internal control management system,poor internal control implementation,and incomplete information exchange and supervision-evaluation mechanism.In the forthpart,from the perspective of the head office,for the purpose of optimizing the internal control of Bank A,six corresponding solutions were proposed.They are: clarifying internal control responsibilities,completing process management and information construction,enhancing the implement of the system,internal control evaluation and results application mechanisms,and establishing integrated supervision platforms.The fifth part is the conclusion.It recommended Bank A to improve the effectiveness of internal control under several methods,such as: clarify the division of responsibilities,adopt a "three-in-one" management model,strengthen the use of information systems,improve internal control evaluation,and integrate inspection management.This thesis mainly adopts literature research method,field investigation method and case analysis method,that combining theoretical research and empirical analysis.By searching the relevant research literature on internal control at home and abroad,it could help to understand the basic theoretical knowledge of internal control from a macro level.Secondly,by searching the public and internal information of Bank A,it gains a deeper understanding of the management status of Bank A's internal control,as well as benchmark regulatory requirements and peer practices.Above all,this thesis put forward some optimization suggestions.Basing on the internal control practice of Bank A,this theses analyzes and summarizes the problems existing in Bank A's internal control.And it combines domestic and foreign research results to propose countermeasures and suggestions for Bank A's internal control.The innovation in this thesis mainly embodies in two parts.Firstly,from the perspective of the head office,it combines the current situation of Bank A,and then put forward targeted countermeasures and suggestions.Secondly,based on work experience and actual case analysis,the thesis put forward optimizing recommendations for Bank A and could be borrowed by peer banks.It is hoped that the content and conclusion of this thesis could provide a reference for Bank A to optimize the internal control system and improve the level of internal control management,as well as the internal control management to city commercial banks.