Research Of Loan Business Process Reengineering Of Agricultual Bank Of China

The aritical focuses on the loan business process reengineering. Because of the restraint policy in Chinese financial market, the banking industry is lack of innovation. There are similar characterized and same priced financial products in different banks. Customers have no other choice. As a result, the bank couldn't look to winning competitions by providing substitutions, but by service efficiency. For example, the agricultural bank of china (the ABC), one of the four state-owned large banks, faces the same problem. To promote the efficiency, the ABC must restructure it's management teams and reform it's employee-awarding regulations. In practice, the ABC establishes several departments to work on it's loan management process for risk controlling. Decentralizing surely lowers the risk, but at the cost of inefficiency. More seriously, the loose of inefficiency is beginning to exceed the benefit of risk reducing. The ABC has always to put the market demanding, which means efficiency, at the first place, redesign it's assets or loan management process, and finally, realizes the balance between the risk control and the efficiency. The core of process renewing is to simplify the unnecessary procedures, especially the procedures of project loans and single personal loans, and strengthen the coordination between the senior managing teams and the junior marketing teams.