Responsibility Research Center Model Of Commercial Banks

The application of responsibility center business model in commercial banks is aboutto begin in the1980s, when some western commercial banks began reengineering processof products-centric and services-centric. Responsibility center system is a modernenterprise management system, based on the impact of scientific management, the modernaccounting series of theory and practice of accounting, information technology, flatmanagement and process reengineering.This paper firstly introduces the background for the study of this subject, which isbased on the wave of commercial banks process reengineering and flat management theory,as well as the application of it in western commercial banks. Then, the author explains themeaning of responsibility center, and the responsibility center business model, theircharacteristics, classification, and its origins and the course of development. By contrastingwith the traditional business model of commercial banks, the author reveals the necessityof using this mode, which are: the result of the inevitable changes in the organizationalstructure of the commercial banks, reflecting the decentralized thinking, conducive to theassessment of performance measurement, and beneficial to provide a better service for thecustomers.To illustrate the application status of responsibility center business model in Chinesecommercial banks, the paper cited two instances: the reformation of China MinshengBanking Co., Ltd, and the establishment of documents processing center of the Industrialand Commercial Bank of China. Through the analysis of these two instances, we foundthat there are two main forms in Chinese commercial banks. One is the cost center and theother is the profit center. There are four main issues that commercial banks need to payattention to the application of this model: the positioning and direction of development,system support, talent pool, and assessment and incentive and restraint.The last two chapters of the article focuses on the basic needs of building this model: toestablish a Vertical management system, and to establish background centralizedoperations center. Also, they need to provide the processing system handling the business,to establish the right to divided responsibility system and the performance appraisal system,and the talent pool as a support system.