Banking Reform Research On The Implementation Process Of A Commercial Bank In Zunyi City

Since the1990s, China’s banking industry has reformed deeply its management system, making its overall strength has been rapidly developed. But the evolution of the financial system made China’s banking industry facing enormous challenges, such as diversification of investment channels for residents, carrying forward interest rates market-oriented continuously. On the other hand, with the state-owned commercial banks have been restructured and listed, as well as foreign banks’business scope has been expanded, China’s small and medium banks faced severe market environment, and needed urgently for change in order to survive and develop.Under the pressure of banking industry competition and changes in the external environment, China’s small and medium banks in the period of strategic transformation have to explore the potential direction for survival and development. According to peers’ experience abroad, process bank building is exactly an important way to enhance the bank’s own efficiency and competitiveness.Starting from2005, China Banking Regulatory Commission (CBRC) also promulgated a series of regulatory guidelines about process bank building.Therefore, in order to face the challenges of customers’ needs and banking industry competition, or meet the regulatory requirements, small and medium banks must follow the best approach to meet customers’needs and create value, optimize and transform comprehensively organizational structure, business processes, operating system, and build process bank adapting to market competition and preventing risk effectively.The concept of process bank originated from business process reengineering beginning in America and Europe in the1990s. In1990, Professor Michael Hammer from Massachusetts Institute of Technology (MIT)firstly proposed the concept of process reengineering, and then business process reengineering began to rise. The theory of business process reengineering played an important role for management of modern enterprise.After the rise in business process reengineering, its practice and research of commercial bank made bank reengineering gradually formed, and the concept of process bank began to spread. In1992, George Bollenbacher firstly proposed the concept of financial process reengineering, elaborated the connotation of bank reengineering, bank reengineering beginning to be researched widely.According to the relevant research, we can consider process bank as a new process-centric bank management mode through reconstructing the bank’s business processes, organization processes, management processes, and cultural ideas.In addition, we can conclude that the main characteristics of process bank are:(1)Customer-oriented;(2) Flattening of agency;(3) Vertical management model of business lines;(4) Front, middle and back departments are separated from each other, and mutually restricted;(5) Centralized operation and management in middle and back office.Subsequently, the paper analyzed and researched exploration and construction for process bank building of domestic and foreign commercial banks. Beginning in the late1980s, foreign commercial banks conducted bank reengineering, and weakened branches’function, reduced the intermediate links, and cut down the level of branches, in order to establish a division-based organizational structure.As mentioned before, facing changes in the financial environment and intense competition in the banking industry, Zunyi City Commercial Bank encountered bottlenecks in business development and performance improvement. The process bank building is necessary for Zunyi City Commercial Bank to overcome the problems:(1) Process bank building is conducive to enhance its own core competitiveness;(2) Process bank building is conducive to deeply reform bank’s management system;(3) Process bank building help improve its own management level;(4) Process bank building is necessary for adapting to external regulation.For the resistance and constraints when building process bank, Zunyi City Commercial Bank can take the following practical measures:(1) Change management concept and foster customer-centric corporate culture;(2) Combine long-term design and careful promotion;(3) Train personnel capable of managing the operation of process bank.In order to enhance business efficiency and core competencies, process bank building of Zunyi City Commercial Bank followed the following framework:(1) Customer-centric organizational structure reengineering;(2) Strategy-oriented;(3) Design management processes and support processes on the base of business process optimization;(4) Strong information technology as the basic support;(5) Construct organizational structure based on optimized business process;(6) Foster good corporate culture.In principle, process bank building of Zunyi City Commercial Bank mainly adhered to the following items:(1) Customer-centric;(2) Organizational structure obeys business processes;(3) Vertical business management based, transverse operations supplemented;(4) Apply advanced information technology;(5) Combine fundamental reengineering and continuous improvement;(6) Combine top-down and bottom-up.Process bank building is a very complex transformation, should be implemented under the principle fundamental reengineering principle and progressive improvement. The implementation path for process bank building of Zunyi City Commercial Bank includes:(1) First, optimizing business processes is the entry point and core of process bank building;(2) Construct vertical model of business management and flattening organizational structure based on optimizing process;(3) Strong IT support process bank.Finally, we elaborated specific program for process bank building of Zunyi City Commercial Bank, in the aspects of reconstructing the concept, optimizing business process, designing organizational structure, establishing scientific and rational human resources policies, and rebuilding the information technology.Our conclusion is that small and medium banks can build process bank in order to improve competitiveness, according to their current situation of development and strategic demand.