Research On The Internal Control Of Commercial Bank A To Prevent The Corruption Of The Senior Managements

Since the successful convening of the 18th National Congress of the Communist Party of China,the Party and the government once again emphasized the importance of anti-corruption,and all sectors of society began to pay close attention to corruption.Corruption of corporate executives usually leads to the loss of enterprise assets or the reduction of operational efficiency,as well as losses to the country and society.In recent years,the frequent corruption cases of the senior management’s corruption in local commercial banks and urban banks have caused serious damage to the bank credit,intensified doubts about the bank’s risk aversion capabilities,and lowered people’s confidence in market financial stability.It is urgent to strengthen the research on the corruption of local commercial banks and urban banks and the prevention and governance of executive corruption risks As a company system and management method,internal control plays a key role in promoting compliance in the company’s business process and is an important part of enterprise management.However,whether internal control can reduce the risk of executive corruption,there are few relevant theoretical and practical studies.Based on the above background,this paper conducts research on bank executive corruption and internal control.Through the collection and review of domestic and foreign literatures on internal control and executive corruption,based on the introduction of relevant concepts,this paper takes commercial Bank A as a case to study the internal control framework to prevent executive corruption.The construction of this structure is fundamentally to limit the rent-seeking behavior of the shareholder agent-the bank executives and the collusion between the executives and the regulators.Through the principal-agent theory,rent-seeking theory,collusion theory,by describing the current situation of the internal control system of commercial Bank A,the problems and analyzing the reasons for the problems,it combines with the internal organizational structure of commercial Bank A,the supervision responsibility of each supervision subject in preventing the risk of senior management’corruption is redefined,and the internal control structure of commercial Bank A for preventing senior management’ corruption is constructed.Among them,there are senior management corruption risk management paths and Two-Line reporting paths among different levels of supervision subjects,especially highlighting the importance of sending discipline inspection and supervision teams and audit departments,and forming a network system for Solving Senior Management corruption risk supervision problems.The internal control framework for preventing executive corruption is a framework that organically combines various supervisory bodies by using the matrix organization form and relying on the newly established hierarchical management and information reporting system on the basis of the original departmental setup of Bank A.In order to ensure the normal operation of the framework,the key is to establish and improve the cooperation mode between the main bodies within the framework,the way of information communication and the long-term operation mechanism of the framework.By further clarifying the cooperation mode,information communication method and how to ensure the long-term operation of the framework,including strengthening the exchange and linkage of collaborative supervision information to realize the information exchange of supervisory subjects,and establishing a senior executive decision-making system and relevant systems to establish and improve a long-term institutional system.In addition,from the three levels of organization,system and culture,this paper puts forward the safeguard measures for the construction and implementation of the framework,and finally draws a conclusion.It puts forward corresponding countermeasures and suggestions for preventing the corruption of bank executives,ensuring the healthy development of local financial market and regional economy.Under the framework of the principal-agent theory,through the rent-seeking theory,collusion theory and other basic theories,this paper constructs an internal control framework to prevent senior executives’ corruption from the perspective of anti-corruption,effectively making up for the shortcomings of existing internal control.While "looking down",it also"looks up" to build a strict internal control framework.In particular,this paper strengthened the role of the bank’s discipline inspection and supervision team,and made it clear that Party organizations at all levels should give full play to their leadership role in supervision.It not only emphasized the independence of their regulatory responsibilities in the framework and the directness of their reporting path,but also emphasized that these two departments should timely detect the rent-seeking behavior of senior executives in major decisions and daily work,and reduce the possibility of collusion between risk management,internal control departments and senior executives.According to the research of this paper,banks and other stakeholders can pay more attention to the corruption of the leadership and the establishment of internal control.They can reduce the corruption of senior managers by limiting the behavior of managers,and ensure the steady development of enterprises,which has a strong practical significance.From a macro perspective,the local commercial banks and urban banks,to a large extent,play the role of local credit intermediaries and payment intermediaries,and play a very important role in local resource allocation,economic stability,and financial risk avoidance.The prevention of corruption is not only in line with the reality of the internal management of banks,but also in line with the general idea of the current internal control construction of the local commercial banks and urban banks.It is not only an objective need to maintain fair competition in the market,shape a good corporate image,and effectively resolve and avoid risks,but also to better implement the decision and deployment of the superior competent department on carrying out the work related to "maintaining financial stability and strengthening internal management".Therefore,it is of great significance that the internal control framework constructed in this paper to effectively prevent executive corruption.