First, improve the internal control of commercial banks. In Bahrain Company, Singapore, Allison was both a trader and a supervisor, which seriously violated the bank's internal control regulations and was the root of the whole incident. For Bank of China, improving the internal control system can do the following: 1. Under the new situation of reform, the business of commercial banks is constantly changing and innovating rapidly, so it is particularly important to revise and improve the rules and regulations. First, establish scientific and practical operating rules of internal control system to avoid risks caused by program omissions. The second is to establish substantive audit norms covering internal control and accounting control, and formulate corresponding audit standard system to provide objective basis for improving audit quality. The third is to establish an audit work system, strengthen the self-control and self-discipline of auditors, and ensure the authenticity and reliability of audit information. Fourth, establish a follow-up audit and re-audit system, strengthen the behavioral constraints on auditors, improve audit quality, and promote the effective transformation of audit results. The fifth is to establish an audit linkage mechanism, straighten out the audit relationship, strengthen audit cooperation with other functional departments and audited units, and enhance the synergistic effect of investigating and preventing cases. 2. Focus on monitoring key positions. 3. Implement authorization credit control, including the scope, level, responsibilities and procedures of authorization examination and approval. 4. Establish a supervision system before, during and after the event to ensure the effectiveness and reliability of the internal control mechanism. The audit gate was moved forward and advanced prevention was implemented. In the past, the traditional post-audit method has been changed into pre-audit and post-audit Pre-audit is mainly to examine, demonstrate and supervise business decisions and measures in advance, find out the advantages and disadvantages of business feasibility and efficiency in advance, participate in decision-making, and audit the correctness, rationality, efficiency and benefit of credit and financial revenue and expenditure in a timely and effective manner. In-process audit is to monitor whether the rules and regulations, management process and ongoing business activities are true, reasonable, legal, compliant and effective, and correct mistakes in time. Therefore, it is necessary to extend the tentacles of audit supervision before and during the event to the decision-making field, find out the feasibility and efficiency of economic business in advance, and avoid the mistakes and losses of manpower, material resources and financial resources. Take precautions, help commercial banks to establish and improve rules and regulations through pre-audit and in-process audit, and achieve "prevention first, combining prevention with prevention" to nip in the bud. 5. Severely punish violators, establish the authority of rules and regulations, and resolutely punish violators according to standards. In the case of Bahrain Bank, the top management of the headquarters of Bahrain Bank has always turned a deaf ear to Allison's illegal behavior, which is also worthy of our reflection. 6. Implement humanized management and rule by virtue, and strengthen the education and management of employees' professional ethics.
Second, improve the supervision system of commercial banks. In addition to its own internal control, the financial system should improve the industry supervision system as soon as possible, realize the legalization, scientificity and efficiency of supervision, combine industry self-discipline with social supervision, fully reflect the independence of external audit, and focus on the following points: 1, improve the principal law and formulate the detailed rules for the implementation of financial law. 2. Build a scientific financial supervision information system to enhance the transparency and standardization of information. 3. Establish an efficient financial risk early warning system. 4. Strengthen the supervision of overseas branches, and strengthen on-site inspection and handling in strict accordance with the Guidelines on Supervision of Overseas Institutions of Commercial Banks. 5. Strengthen industry self-discipline and social supervision.
Three, commercial banks should establish a strict "firewall" for mixed operation. 1. It is necessary to stipulate the restrictions on the proportion of funds and business of banks, securities, insurance and subsidiaries under the financial group, and set up a "firewall" for funds, business and scale. 2. Establish a mandatory information disclosure system for internal and external transactions of financial groups, formulate accurate requirements for the degree, specification and completeness of information disclosure, and set up a "firewall" for information integrity. 3. Treat derivatives investment correctly and control the investment risk within a certain tolerable range. With the rapid development of the international financial industry, financial derivatives have increasingly become an important part of the investment portfolio of banks, financial institutions and securities companies. Therefore, when commercial banks are engaged in mixed operations, especially derivative products, they should formulate a set of perfect internal management measures for their trading activities, including trading position limit, stop loss limit, internal supervision and audit.