Analysis of Internal Control Deficiencies and Governance Recommendations for Bank of Communications

In response to the user’s question “Bank of Communications has received nearly 100 million yuan in fines this year; how to completely rectify internal control deficiencies?”, this is an important topic regarding internal control and compliance management of banking financial institutions.

As a large state-owned joint-stock commercial bank in China, Bank of Communications has frequently received fines from regulatory authorities in recent years, with the total amount of fines approaching 100 million yuan, reflecting relatively serious problems in its internal control and compliance.

1. Weak Links in Compliance Management
   • Loopholes in credit business management
   • Inadequate employee behavior management
   • Inconsistent implementation of business operation processes

2. Internal Control Deficiencies
   • Unsound risk identification and early warning mechanisms
   • Insufficient coverage of internal audits
   • Weak links in branch management

3. Types of Violations
   • Inadequate “three checks” for loans
   • Illegal loan issuance
   • Violations in wealth management business
   • Personal information protection issues

1. Improve the System Framework
   • Establish and improve the internal control system framework
   • Strengthen system implementation and supervision
   • Regularly update and optimize business processes

2. Strengthen Technological Support
   • Use big data and artificial intelligence technologies to enhance risk monitoring capabilities
   • Establish a real-time early warning system
   • Improve the risk control functions of business systems

3. Enhance Personnel Management
   • Strengthen employee compliance training and assessment
   • Establish an effective incentive and restraint mechanism
   • Strict accountability system

4. Boost Audit Effectiveness
   • Strengthen the independence and professionalism of internal audit
   • Expand audit coverage
   • Strengthen audit of key areas and links

5. Cultural Construction
   • Foster a corporate culture of compliant operation
   • Enhance compliance awareness among all employees
   • Establish the concept that compliance creates value

Regulatory authorities are continuously increasing their supervision over the banking industry, and the penalties for violations are constantly being intensified. Banking financial institutions need to fundamentally attach importance to internal control and compliance construction to achieve high-quality development.

---

Since the search tool cannot temporarily obtain the latest specific data, the above analysis is based on the general issues of internal control management in the banking industry. For the latest specific details of Bank of Communications’ fines and official responses, it is recommended to refer to the administrative penalty announcement information from regulatory authorities or the official announcements of Bank of Communications.