Study On Internal Control Optimization Of City Commercial Banks

In the context of broad cross-border business space and gradual recovery of people’s domestic demand in the post-epidemic era,commercial banks are faced with various and complex risks in the daily operation and management process,and how to reduce the losses caused by risks and avoid or control risks has become the top priority in the operation and management of commercial banks.Chinese regulatory authorities also attach great importance to the internal control of commercial banks.In the "Measures for the Risk Classification of Financial Assets of Commercial Banks" issued in February 2023,they require commercial banks to carry out risk classification for all the internal and external financial assets of credit risks.At the same time,Regulators also put forward systematic requirements for commercial banks to strengthen the classification of internal risk management and clarify the relevant measures of supervision and management.From the actual situation,most of the fines issued by China Banking and Insurance Regulatory Commission to commercial banks are related to the failure of internal control of commercial banks.Therefore,it is very necessary to deeply study the internal control system of commercial banks and build a scientific and efficient internal control system for commercial banks with problems in many business areas.The research object of this paper is the Bank of Zhengzhou.Based on the overall grasp of the internal control of local commercial banks,this paper analyzes the existing problems of the internal control of the Bank of Zhengzhou deeply through the induction analysis method,literature research method and case analysis method.The analysis shows that there are mainly the following problems in the internal control of Bank of Zhengzhou: the first is unreasonable equity structure,the second is low provision coverage,and the third is incomplete implementation of internal control.As a city commercial bank in Henan Province,Bank of Zhengzhou obviously has deficiencies in internal control.Since 2019,Bank of Zhengzhou and its branches have been fined 62 times in total by the China Banking Regulatory Commission.The internal control effect of Bank of Zhengzhou not only affects its operation and management,but also indirectly affects the development of the whole Henan local financial market as the only local bank in the province.Therefore,this paper takes the Bank of Zhengzhou as a specific case study object and puts forward relevant countermeasures to optimize internal control.This study draws the following conclusions: Under the situation of increasingly strict new regulatory requirements,the Bank of Zhengzhou is bound to effectively improve the level of internal control within the bank,and improving the construction of internal control is still the key work of the Bank of Zhengzhou in the future development process.In this paper,starting from the internal environment,risk assessment and control activities of internal control elements,aiming at the problems existing in the internal control of the Bank of Zhengzhou,the introduction of strategic investors,efficient play of the role of the three lines of defense,clear internal control responsibilities undertaken by the staff of various positions and other suggestions to optimize the internal control,in order to improve the internal control of the bank,for the steady development of the bank.