The title of the thesis I want to write is "On the Construction of Internal Control System of Commercial Banks". Who can give me some information or model essays on this?
Give you an article, you can refer to it and hope to adopt the internal control system of commercial banks in China. Hou (Business School of Hubei University of Technology, Wuhan, Hubei 430079)[ Abstract] A sound and effective internal control mechanism is the key to prevent financial risks and ensure the safe and stable operation of the banking system. This paper attempts to analyze the importance of internal control of commercial banks and the problems existing in internal control of commercial banks in China, learn from the experience and lessons of internal control of foreign banks, improve the internal control mechanism, and build a safe and efficient internal control system of banks. Keywords: Internal Control of Commercial Banks' Financial Crisis The just-concluded annual and quarterly reports of listed companies in China show that some financial institutions in China, including commercial banks, are making good profits, while most banks in Europe and America are facing bankruptcy acquisitions and losses. For example, in the first four months of 2009, 29 commercial banks in the United States declared bankruptcy. From this perspective, China's economy narrowly escaped the financial crisis this time. The financial stability led by the central bank has played an important role, and the construction of the internal control system of banks has provided a safe foundation for the banking industry to avoid risks. As the main body of China's financial industry, the ability of state-owned commercial banks to guard against risks is directly related to the security of China's banking system, so it is more important for state-owned commercial banks to establish effective internal control mechanisms themselves. I. Importance of Internal Control System of Commercial Banks In today's increasingly fierce competition in the global financial industry, economic globalization has become an inevitable trend. The cross-border business of banks is growing day by day, M&A activities are increasing day by day, the trend of diversification and specialization is becoming more and more obvious, the pace of financial innovation is constantly advancing, the possibility of financial risks is increasing sharply, and the consequences are more serious. Internal control has become the core factor related to the stability and development of commercial banks. Commercial banks have the characteristics of high leverage ratio, high information asymmetry, high interest correlation and low fault tolerance. Regulators all over the world pay special attention to the supervision of internal control of commercial banks. With the deepening of China's banking opening to the outside world, it is necessary for commercial banks to establish and implement a sound internal control system to prevent and reduce internal control risks in order to cope with rigid supervision from inside and outside. Internal control without development is equivalent to chronic suicide; Without the development of internal control, the faster the development, the greater the loss. If we can't operate steadily according to law and have an effective internal control system, commercial banks will lose their competitiveness in the increasingly fierce market competition, and even face the situation of survival choice. Therefore, only by establishing and perfecting the internal control system that meets the requirements of market economy and takes into account the national conditions can we ensure the safe operation of commercial banks and effectively prevent and resolve financial risks and crises. Second, the problems existing in the internal control of commercial banks and their analysis 1. There are deviations in the concept of internal control. In practice, China's commercial banks do not pay attention to the comprehensiveness of internal control, and always think that the internal control mechanism is the whole chapter of organizational work such as the summary and restriction of various rules and regulations, thus ignoring that the internal control mechanism is a dynamic mechanism of interlocking, supervision and restriction in the process of business operation. Some managers think that internal control is only the responsibility of the audit department, while ignoring the internal control management of other management departments. This cognitive deviation is reflected in the operation and management of commercial banks, and it is bound to take remedial measures afterwards, which completely violates the characteristics of internal control mechanism and leads to financial risks. In addition, the conceptual deviation is also manifested in the fact that some grass-roots staff do not know the connotation of internal control and risk management, which leads to the unsynchronized business development and internal control system construction, especially the lack of necessary system guarantee for new business development, which has great potential risks. Lack of understanding makes it difficult to implement internal control measures and achieve the expected goal of accounting control. 2. Fierce external competition leads to increased business risks. With the continuous expansion of financial market opening, China's commercial banks are facing more intense competitive environment and more complex and diverse risks. Some grass-roots commercial banks are profit-driven, emphasizing business development and neglecting internal control, resulting in some internal control systems not being implemented in place. Specifically, on the one hand, commercial banks focus on expanding asset scale, and in order to obtain higher asset returns and asset growth rate, they issue loans at lower prices and relaxed conditions, which increases the risk of bank capital operation. On the other hand, in the fierce financial competition, in order to occupy and expand market share, various new financial products and businesses are rapidly breeding off the balance sheet of banks, which makes banks unconsciously bear various potential risks. All these external conditions that are conducive to financial development cannot ensure that financial institutions consciously follow the basic principles and objective laws of financial development. 3. Internal control mechanism is not perfect, and internal control is a mere formality. The internal control system of some banks cannot form an interrelated whole among departments, and some even contradict each other. When exercising the monitoring function, all business departments in the bank have unclear responsibilities, or they are in charge of their own affairs, or they shirk their responsibilities, which makes it impossible to form a coordination and restriction mechanism. Second, the system construction lags behind. With the development of electronic finance, great changes have taken place in banking business and the means of handling various businesses. Due to the lag of management and the exploration process of reform, some new businesses have not yet formulated perfect operating procedures and corresponding systems, and there is a gap to follow. On the other hand, most domestic commercial banks pay more attention to perfecting and strengthening the system construction in internal control construction. There are too many internal control systems, regardless of cost, and they often lack effective means to measure and evaluate the rationality of internal control system design and the effect of implementation. Third, there is a lack of incentive and restraint mechanisms for rewards and punishments. At present, some banks not only have no clear punishment measures for violators, but also have no corresponding enforcement subjects. As a result, the responsibilities, rights and interests of relevant personnel are out of line, and the loan risk cannot be controlled. However, the bonus incentive method has greatly contributed to the moral hazard of management. In order to pursue high bonuses and bonuses, the management blindly innovated their business and ignored the risk control in the process of internal control, which formed the business values of profit first and decided the failure of internal control. Fourth, the control system is inefficient and a mere formality. Control is divided into pre-control, in-process control and post-control. At present, commercial banks mainly adopt in-process control and after-event control, and the types and means of control are single. Some systems are unrealistic, the implementation is a mere formality or difficult to implement, only documents are issued, and when specific problems are encountered, they are modified and avoided with various "reasons", and even some rules and regulations are ignored. This is the most direct and fundamental reason for the increase of bank operating risk and the increase of case rate. 4. The power restriction is unbalanced, and the audit supervision function is weakened. Although the management mode of top leaders' responsibility system is conducive to the improvement of management level, due to the lack of power restriction, standardized and effective supervision mechanism and imbalance of powers and responsibilities, some responsible persons have acted beyond their authority, abused their powers and accepted bribes, which has seriously affected the steady development of commercial banks. At present, all commercial banks have implemented a system-led audit management system or a universal audit responsibility system, but the audit department, as an internal institution at the same level, has no independence, and its audit functions and powers have not been fully exerted, so it is difficult to effectively supervise the losses caused by leadership decision-making mistakes. In addition, some supervision and inspection itself lacks strength, and the inspection goes through the motions and cannot play its due warning role. In addition, the lag of audit supervision and the backwardness of audit methods have affected the function of audit supervision and failed to play the role of finding mistakes, preventing leaks and controlling risks. Three. Measures to strengthen the construction of internal control of commercial banks in China. Create a good internal control environment and strengthen the internal control culture. The internal control environment of a bank is a kind of atmosphere and conditions, which affects the control consciousness of employees and the consciousness of implementing control, and directly affects the implementation of internal control and the realization of the overall business objectives of the bank. By shaping a good internal control culture, affecting employees' way of thinking and behavior, a control concept is integrated into all aspects of business management activities, so that employees can consciously implement the company's rules and regulations, and the awareness of internal control forms an idea and becomes the code of conduct for all work. Finally, we should constantly improve the internal control system in this construction process, cover all links of commercial banks as much as possible, and realize the whole process of internal control. 2. Establish a comprehensive internal risk control system. First, strictly authorize the examination and approval system. According to the management level, risk control ability, system implementation and asset status of the operating banks, the differentiated authorization system is implemented to carry out continuous and effective supervision. Strengthen risk control, and on the basis of fully demonstrating the business responsibilities, business scope, quality and efficiency, and internal control level of the authorized units, implement differentiated authorization for each business unit to change the current phenomenon of single authorization mode and passive large authorization. Second, strictly implement the high-risk management system and accelerate the establishment of a credit risk control system. Western commercial banks adopt a clear credit authorization management system, which is mainly reflected in the combination of personal credit authorization and decentralized decision-making. China's commercial banks should also learn from its experience, improve the accuracy of five-level loan classification, combine incremental loan management with stock management, and combine loan profit assessment with loss assessment, and gradually establish a comprehensive risk management system to improve the level of internal control management. The third is to establish a risk measurement and early warning mechanism to effectively prevent risks and control the losses caused by risks within an acceptable range. Before business development, the degree of business risk should be measured: in the process of business development, the risk status should also be tracked and monitored, and preventive measures should be put forward on the basis of risk assessment to avoid and control possible risk losses. 3. Improve the accounting control system and clarify the division of responsibilities. In a sense, the accounting department is the first monitoring department within the bank, so many foreign commercial banks give the accounting supervisor or chief financial officer special power and status. Summarize experience, comprehensively integrate, sort out and optimize existing internal accounting control systems and processes. Through the systematic investigation of accounting business process risks, we highlight the prevention of business risk points, find out the risk points of each link, formulate scientific, standardized and systematic rules and regulations, and design forward-looking and operable workflow. Clarify the objectives, key control links and requirements of internal accounting control, so that the operation of each accounting post has rules to follow. Strict post division, according to the actual requirements of business operation, according to the requirement that each business must have at least two posts or more personnel to participate in recording, accounting and management, clearly define the division of responsibilities and rights of each post or employee in business operation, and assume corresponding work responsibilities according to their respective work nature and authority; Strict post separation system, strengthen risk prevention in advance, and form a strict post separation and mutual restraint mechanism. 4. Strengthening audit supervision Audit supervision is an indispensable and irreplaceable link in the internal control mechanism. Commercial banks should establish the authoritative position of audit work as soon as possible and build an independent, detached and advanced modern audit supervision system. It is necessary to implement a set of interlocking dynamic supervision mechanisms in the banking operation of commercial banks, and prevent and control risks to the maximum extent through these restriction mechanisms, and change the post-inspection based on remedy into pre-prevention based on prevention, so as to eliminate problems in the bud. Auditors should adhere to principles, be familiar with business, be fair, and pay attention to the rational allocation of age and knowledge structure; We should create conditions as much as possible, strengthen the on-the-job training of supervisors in various forms, enhance their business inspection and analysis ability, adapt them to the actual needs of the continuous development of banking business, and lay a good foundation for effectively improving the quality of audit work. 5. Strengthening the electronization of banks and establishing a computer system to rigidly control the increasingly modern banking business require the internal control means of banks to be more efficient, safe and reliable. Therefore, it is necessary to strengthen the application of computers in internal management and select professional computer technicians. Improve the program operation of computer management system, guard against external network risks, and put illegal computer infringement under audit monitoring; Through the development of system control software, all aspects of internal control of various businesses, including the supervision of business personnel, computer personnel and computer system detection, are compiled into computer programs, which are rigidly controlled by the computer operating system to avoid unauthorized use of computers to handle business and various potential risks. At the same time, the internal audit department of the bank should also establish a computer audit network suitable for the new situation, through which the business dynamics and accounting information of commercial banks can be fully grasped at any time, so as to realize prevention in advance and monitoring in the process. [References ][ 1] Su. Theory and Frontier Affairs of Internal Control System of Commercial Banks, China Financial Publishing House, March 2008. [2] Guo Cailian: How to strengthen the internal control management of banks, Journal of Finance, 2008, 1 1 .[3]