Reengineering Of Rural Credit Cooperatives Credit Business Processes

Rural Credit Cooperatives (RCCs) is an importance part of Chinese Finance system, and has outstanding status in Rural Finance system. In the resent years, RCCs are facing intense competition. Overstaffed organization and work inefficiency have made the reform of the RCCs become the focus of the scholars and government. The most important aspect of the reform is no doubt the business process reengineer (BPR).In this paper,the main line is the problem—the theory—empirical research-the effect of analysis.Using a questionnaire method, five main problems of the business process have been identified as follows:(1) too much steps of determinant eligible recipients process, low efficiency, long loan cycle;(2) the determinant eligible recipients process and loan management are not totally separated;(3) the lack of a mature after-loan management system;(4) overstaffing and inefficiency of the organization structure;(5) lack of professionals of the loan decision-making committee.A reasonable process has been suggested at the end of the paper. Six improvements can be attained from the new process:(1) the determinant eligible recipients process and loan management are separated;(2) higher level of the group decisions;(3) flat organization structure;(4) more flexibility on customer relation;(5) mature after-loan management system guaranteeing the clearance of power and responsibility. In a word, it can be forecasted that the BPR eliminates the unnecessary steps and presents a brand new cost-effective business process.