A Study On The Incentive Mechanism Of Bank Account Manager Of Bank Of China In China

With China’s economic and social development, especially the "Twelfth Five Year Plan" that pointed out that the requirement for the realization of direct financing accounted for the proportion of social financing scale increased significantly, multi-level financial market system perfect further, actively introduce foreign strategic investors to speed up the opening of financial industry reform, promote the transformation of the mode of economic development goals, the banking industry competes intensely day by day. The bank’s business development depends on the customer, especially on the institutional customer, these customers are very important for banks, it is the relationship manager who serves companies and institutions that is the most important and main staff in the bank to serve the mentioned customers. Relationship manager who serves companies and institutions as banks’tentacles into the market, is an important driving force for the realization of bank performance and long-term development, how to fully mobilize the enthusiasm of their work and build the incentive mechanism to reasonably is the key to occupy a space for the banks in the competitive market.Bank of China Y Branch is Bank of China’s second-grade branch, and it’s a local traditional state-owned commercial bank. With its internationalization, diversification and quality of service, it has a good reputation in the customers and the society from all walks of life. But the rate of deposit and loan quantity in the local market decreased year by year, the resigning rate of relationship manager increased as well, while these people are important for the development, especially the business development of Y Branch, Y Branch is facing great pressure. As more and more banks and cut-throat competitions grow, the incentive mechanism should be built to give full play to the role of relationship manager, creating a steady team to support business development.This paper is based on the principal-agent theory and incentive theory, using the literature research method, comparative research method, questionnaire survey method respectively, from the view of Bank of China Y Branch and view of the agent who is relationship manager serving companies and institutions, analyzing deeply Bank of China Y Branch’s incentive mechanism and the expectations of relationship manager. The results show that the incentive mechanism of the status quo is as follows:the income inventive including salary, performance bonuses, specific awards and special awards, welfare incentive including lunch allowance, lunch delivery service, physical examination, non-material incentives including occupation training and occupation career development. The incentive demand is as follows:income should be increased, the performance evaluation mechanism should be improved, the subsidies for the cost of using cars should be reasonable, leaders need to pay attention to fairness, the quality of training need to be improved with the quantities reduced, and opportunities of occupation career development needs be increased. On the above research, The paper points out the problems and reasons existing in the existed incentive mechanismOn the basis of the above analysis, this paper presents the following relationship manager incentive mechanism. First, in terms of income system, commission system and process assessment should be built to make clear what will the manager relationship while doing business, the assessment should be fair and impartial, and bank should give feedback after the results. Second, in terms of the welfare distribution, relationship manager can get the subsidies for the cost of using cars through reimbursement, which could actually motivate them; Third, in according to training system, the ministry of human resources take charge in controlling the total amount of training times, improving the quality of training, paying attention to the diversity of training content, enriching training ways, strengthening the training pertinence and difference. Fourth, concerning occupation career design, the proportion of people of the intermediate grade 6, junior grade 1 should be added. Recruitment for the leaders especially related to the business part need offer more opportunities to those relationship managers, Y Branch also need to establish talent pool for different administrations, so that the appropriate path for those relationship managers is meaningful. In addition to this, incentive mechanism can be carried depending on the enterprise culture, a clear leading department and reasonable incentive budget.