Bocom Company Credit Approval Process Research

During quite a long period of time, the credit business for company would continue to be one of the main businesses of China’s commercial banks, and the improvement and perfection of the procedure of credit business approval for company would play an important role in the stability of the entire financial industry. Under the background of the full liberation of banking sectors and the fast-paced market economy, and how to adapt to changes in economic and financial environment, accelerate the optimization and innovation process of the credit business approval for company, improve the quality and efficiency of credit approval and enhance the overall competitiveness is the only way that leads to the development of commercial banks.Several problems existed in the credit business approval for company of commercial banks in China for a long time, such as sections for approval are numerous, the response to the market is inefficient, powers and responsibilities are unclear during the process of examination and approval collectively, the power of presidents of branch are too high to restrict with balance, and the credit market is weak. Facing the fierce competition in markets, China’s banking sectors have to learn from the advanced models and experiences to accelerate the pace of transformation from "department banks" to "process bank".Bank of Communications, Minsheng Bank and such kinds of banks which represent commercial banks to take the lead in exploring the process of re-structuring the credit approval and carrying out some innovative practice. The author was engaged in credit for a long term in Bank of Communications and worked there by the end of 2005, then transferred to the Examination and Approval center of West China Bank, and the author was mainly engaged in the review of credit business approval and participated in building Bank of Communications which has undergone the process of credit approval process re- structuring. Examination and Approval Center of West China Bank has proved the correctness of the process of re- structuring by data and examples which derived from four- year organizatioal practice, and played a role in controlling risk, reduction of the costs, increasing efficiency, enhancing the competitiveness,and then achieved good results. Analysis and summary on the organizational practice of Examination and Approval Center of West China Bank could be used as a reference for the optimization and innovation of the company’s credit process.This paper tries to introduce the historical reformation of the credit approval process re- structuring in Bank of Communications, and set the construction of Examination and Approval Center of West China Bank and its organizational practice as examples to be analysed and summarized by using the theory of "business process re- structuring", thus, proving the principles and strategies that should be obeyed during the process of the credit approval procedure re-structuring.And the process of optimization program is envisaged on this basis.This paper aims at concluding that the optimization of procedure should obey the market-oriented and customer-focused principles through case study,and subjecting to the service of the principles such as organizational development strategy, differentiation, standardization, informationization, and effective incentives which combined with adoptable strategies based on practice to propose the system of implementation of strategic business units (business unit body), collecting the revenue and expenditure of line management rights of customers, improving the current service model of account manager, with the product manager supporting the implementation of the system, thus, to build a flat, efficient and customer-centered organizational model. Such things like introducing electronic credit approval methods, creating simple and efficient credit approval process, weakening the power of approval for present in bank branches at all levels, implementing the system of quasi-professional for credit approval officer, adjusting the incentives, guaranteeing the implementation, and all of which have deep meanings in improving the credit decision-making of commercial banks, promoting the quality of credit assets and enhancing market competitivesness...