How Do I Become a Bank Examiner?

Process bank is a modern commercial bank management model, which is an all-round change to traditional bank concepts, management and business. Facing changes in various external environments such as Internet finance and interest rate liberalization, commercial banks must strengthen their management innovation, business innovation, and process innovation to adapt to the new market competition environment.

Process bank

This entry lacks an overview map . Supplementing related content makes the entry more complete and can be upgraded quickly. Come on!

Process bank is a modern commercial bank management model, which is an all-round change to traditional bank concepts, management and business. Facing changes in various external environments such as Internet finance and interest rate liberalization, commercial banks must strengthen their management innovation, business innovation, and process innovation to adapt to the new market competition environment.

Chinese name

Process bank

Foreign name

Process Bank

concept

The first section, the background of the concept of "process bank"

China's banking industry joined the WTO at the end of 2006 when it was fully opened to the outside world. In this context, people are thinking about how Chinese banks compete with foreign banks. What is the gap between Chinese banks and foreign banks? Liu Mingkang, then Chairman of the China Banking Regulatory Commission, gave a clear answer: "At present, almost all Chinese banks have major drawbacks in their business processes. They are still just 'departmental banks' rather than 'process banks'. Innovation and risk prevention are subject to artificial restrictions. Departments in question shirk their responsibilities and are difficult to investigate. Therefore, the compliance mechanism needs to be based on a 'process bank.' This is the background to the concept of a 'process bank'.

Section 2, the concept of "sectoral banks"

For thousands of years, people have become accustomed to the organizational structure of an enterprise, which is to consolidate the same or similar responsibilities within an enterprise to be managed by a certain department. This is a "functional enterprise" or "departmental enterprise". Such as: division system, parent and subsidiary companies, etc. China's commercial banks continue to use this "departmental enterprise" organizational form, so it is a very accurate definition of "departmental bank".

Section III, Disadvantages and Examples of "Departmental Banks"

The department has cut off complete processes, employees lack customer-oriented thinking, serious bureaucratic habits, and lack of information platforms for resource sharing.

Section IV. Reflections on "Departmental Banks"

Due to various disadvantages of "departmental enterprises", under the pressure of fierce market competition, people realized that it is necessary to carry out innovations in the organizational form of the enterprise, and step out of the narrow circle of thinking about individual businesses, products, and departments. Instead, we should look at the enterprise from the perspective of the process, and treat the enterprise as an input-output system. It can be seen that the internal organization of the enterprise is composed of several interleaved processes. The organizational form of the enterprise can be optimized through process optimization.

Section 5,

Eight principles to be followed for bank process construction:

1. All business of the bank is given by customers, so it should be centered on customer service and market-oriented.

2. Starting from the combing, optimization and improvement of the bank's business processes.

3. In the process section, both business processes, management processes and supporting processes should be included. All process systems need to be sorted out, optimized and rebuilt.

4. In modern society, we must fully apply modern information technology for management.

5. Consider the design and establishment of the organizational structure based on the process.

6. Extend to other management systems based on processes, and optimize and improve accordingly.

7. The establishment of the process aims to achieve the bank's ultimate development strategy.

8. The transformation and construction of banks requires a good cultural atmosphere. If the bank is missing in this area, it is necessary to manage the cultural area during the transformation.

Since Liu Mingkang, chairman of the China Banking Regulatory Commission, proposed the concept of "process bank" in October 2005, the concept of building a process bank was quickly accepted by various banks. It seems that process banks have become the most appropriate summary of the future direction of China's banking industry. So what exactly is a process bank? Compared with the existing banking model, what are the important characteristics of process banks?

The concept of process banking was proposed by Liu Mingkang, chairman of the China Banking Regulatory Commission, at the "First Annual Meeting of Shanghai Banking Compliance" in October 2005. At the meeting, Chairman Liu listed a series of shortcomings existing in China's banking industry. For example, the problem of compliance failure of banking financial institutions still exists seriously. There are still a large number of irregularities and long-term failure to implement internal management rules and regulations and operating procedures. Existing, it is difficult for the internal checks and balances of banks to function effectively, causing serious capital losses to the banking industry and so on. He believes that these disadvantages exist because compliance management is still based on "departmental banks" rather than "process banks." This situation has resulted in artificial restrictions on services, innovation, and risk prevention for customer needs, causing problems to shirk responsibility among departments and make it difficult to investigate. Therefore, the fundamental way out is to reconstruct the departmental bank model and build a process bank. In the view of Chairman Liu, the process bank is a brand-new banking model compared with the existing banks characterized by departmental banks (hereinafter referred to as traditional banks).

In theory, Chairman Liu Mingkang's concept of process banking can be traced back to Michael Hammer's business process reengineering theory and Paul Allen's bank process reengineering theory. In 1990, Michael Hammer, a former professor at the Massachusetts Institute of Technology in the United States, published the article "Reengineering Work" in the Harvard Business Review, proposing the concept of reengineering. In 1993, Hamer co-published "Business Reengineering: A Manifesto for the Enterprise Revolution" in collaboration with corporate management consulting expert James Champy, proposing the theory of business process reengineering. On the basis of summarizing the practical experience of bank reengineering in the United States and other developed countries since the 1970s, Paul Allen introduced Hammer's business process reengineering theory to the banking industry. In 1994, he published "Bank Reengineering-A Blueprint for Survival and Prosperity." A book proposing the theory of banking process reshaping. He believes that the reengineering of bank processes is "a fundamental rethinking and thorough redesign of banks as a core in order to achieve dramatic changes in cost, quality, and response speed." A bank restructured through such "fundamental" and "completeness" can be called a process bank.