Case Analysis of 3 Billion Fake Financial Management Internal Control Failure of Minsheng Bank

This paper analyzes Minsheng Bank's 2017 case of 3-billion-yuan fake wealth management products, discussing the causes of internal control failures and summarizing its implications for commercial banks' internal control in China. It reviews internal control theories, conducts a panoramic analysis of the case, constructs an evolutionary game model to explore the strategic choices of the head office and branches, and proposes targeted countermeasures. The study finds that the strategic choices of the head office and branches change dynamically, with branches' decisions influenced by strict internal control and penalties from the head office. Increasing branch business sharing and punishment are effective ways to improve internal control. The innovation lies in using this case to analyze internal control failures, incorporating bounded rationality into the evolutionary game model, and examining long-term strategic evolution.