Research On Internal Control Optimization Of HLD Bank Credit Business

In order to promote commercial banks to establish and improve internal control,prevent financial risks and ensure the safe and sound operation of the banking system,based on the People’s Bank of China Law,the Commercial Bank Law of the People’s Republic of China and other legal provisions and the requirements of prudential supervision of banks,the CBRC promulgated the revised Guidelines on Internal Control of Commercial Banks on September 12,2014.Internal control is a dynamic process and mechanism for commercial banks to prevent risks beforehand,control them during the process and supervise and correct them afterwards by formulating and implementing a series of systems,procedures and methods in order to achieve their business objectives.Commercial banks’ credit risks are particularly prominent among the overall risks due to the special nature of their monetary operations.Against the background of the continuous development of online finance,the credit business of commercial banks has been challenged as never before.The advantages in credit business are shrinking,and there is an urgent need to adjust the traditional credit business.Along with the increasingly broad and mature banking business,banks are interacting more and more closely with their stakeholders,and once there is a problem in one part of the banking ecosystem,it affects the normal development of the whole situation.The credit business of commercial banks is not only reflected in the external profitability of commercial banks,but also in the internal control and risk prevention ability of commercial banks.A stable and effective internal control system can strongly support and guarantee commercial banks to achieve their business goals and take the healthy path of sustainable development.Therefore,how to effectively avoid credit risks through internal control is the urgent focus of commercial banks to be rectified and optimized.It is important to study the risk management system of commercial banks,improve the corporate governance structure and optimize the internal control system for commercial banks’credit business.Taking internal control theory as the entry point,this paper compares in detail the domestic and foreign research literature related to internal control and commercial bank credit business,and uses research methods such as literature research method,case study method and hierarchical analysis method to elaborate the basic theories of internal control and commercial bank internal control,and uses internal control theory,risk management theory and loan rationing theory as the theoretical support for the whole paper.Taking HLD Bank as the research object,we analyze and point out the problems in the internal control of credit business of commercial banks in detail,and then analyze the causes of these problems and point out the scientific direction of optimization.In order to optimize the objectives,strategies and systems of internal control of commercial banks,we propose measures to optimize internal control such as improving the overall organizational governance structure,establishing an effective training and assessment mechanism,improving the quality and professional competence of credit personnel,strengthening effective communication of information within the organization,and enhancing the independence of internal auditors,and evaluate the results of optimization,and propose measures to implement the internal control of credit business In addition,the measures to optimize internal control in credit business are evaluated,and the safeguards for implementing the optimization framework in credit business are proposed,so as to effectively reduce the rate of non-performing loans,improve the core competitiveness of enterprises,and enhance the social value of enterprises.