Study On Credit Risk Management Of A Rural Commercial Bank Under COSO Internal Control Framework

The 19 th National Congress of the Communist Party of China made important instructions for the financial industry.At the meeting,it was emphasized that we should do a good job in the prevention and response of financial risks,further optimize and improve the financial supervision system,and avoid the occurrence of systemic financial risks.In the process of deepening the reform of the rural financial system,rural commercial banks,influenced by the management system and management level,have the characteristics of small asset size,weak individual strength,weak anti-risk ability,single business type,and generally have many problems such as high credit risk and disordered credit management,and their historical accumulated credit risk is gradually exposed.Faced with this situation,the government has also attached great importance to the development of Rural Commercial Bank.Since 2004,the No.1 central document of the Central Committee of the Communist Party of China has continued to pay attention to the "three rural" issues.In 2022,the Opinions of the Central Committee of the Communist Party of China and the State Council on Doing a Good Job in Key Work of Overall Promoting Rural Revitalization in 2022(No.1 central document)proposed to strengthen financial services for rural revitalization,further promote the reform process of rural credit cooperatives,and establish a joint governance and risk prevention mechanism,Take effective measures to deal with and prevent financial risks.This paper takes the credit risk management of A Rural Commercial Bank as the research object,based on the guidance of information asymmetry theory,basket theory and COSO internal control framework,and analyzes the current situation of credit risk management of A Rural Commercial Bank.It is believed that Agricultural and Commercial Bank A has the advantages of many outlets and obvious geographical resources.It has seized the opportunity of local residents’ income growth and loan demand increase,actively responded to the national policy of supporting "agriculture,rural areas and farmers",and has become the bank with the largest market share among many local financial institutions.However,in terms of credit risk prevention and management,Agricultural Bank A has not fully played its due role in internal control,and has problems such as backward credit culture construction,human resource allocation,insufficient risk analysis and risk response capacity,lax loan three checks,failure to fully play the role of audit department,single information source,unsmooth communication and cooperation,and insufficient post-loan management and monitoring.Therefore,Agricultural Bank A should strengthen credit culture construction,Improve the risk awareness and compliance awareness of employees,establish the credit culture concept of compliance creating value,and establish a consensus to prevent credit risk;Organize human resources optimization measures to control credit risk by improving the allocation of human resources,improving the credit position system and organizational structure,and establishing a scientific credit management performance evaluation system;System and process guarantee measures,including strict authorization and approval and post separation,establishment of risk-oriented internal audit of credit business,strengthening post-loan monitoring and risk classification;Information technology supports countermeasures,establishes a comprehensive risk early warning and monitoring system to improve the ability and means of risk analysis,and improves the management efficiency by improving the digital level,establishing efficient information decision-making system channels.This paper conducts a case study on the credit risk management of A Rural Commercial Bank.By combing the domestic and foreign literature related to the credit risk management of commercial banks,combining theoretical analysis with data research,through questionnaires and field visits,it finds out the problems in the internal management of credit risk of A Rural Commercial Bank,and puts forward effective measures to strengthen internal control based on the actual problems of A Rural Commercial Bank,The targeted improvement suggestions are put forward to help improve the credit risk control level of A Rural Commercial Bank.A The problems of rural commercial banks are also common problems in many domestic rural commercial banks at present.I hope that the results of this study can provide some reference for improving the risk prevention and management mechanism of rural financial institutions,and make my due contribution to the development of county economy and agriculture,rural areas and farmers.