The Study of Credit Intensive Management in Jilin Branch of Agricultural Bank of China
|Course||Senior management of Business Administration|
|Keywords||Jilin Branch of Agricultural Bank of China Credit Business DelicacyManagement|
After the shareholding reform and successfully be listed in the market, JilinBranch of Agricultural Bank of China have a great opportunity for development.Since2009, the incremental credit amount to the total of previous credit. However,the amount of bad loans increased gradually. Confronting the complex andfast-changing international and domestic economic and financial conditions, theextensive management style can’t adapt to the requirement of regulation and market competition.How to control the credit risks strictly and how to specialize and strengthen the credit assetbusiness in the bank and realize the scientific, sustained and stable development becomes thefocus of the bank.Firstly, starting from the status of credit management of Jilin Branch of AgriculturalBank of China, the thesis deeply analyzes the problems and the causes of credit management atpresent, and come to the conclusion as follow: first, the operational transformation of creditbusiness didn’t realize completely. Second, the deviation of management concept of creditbusiness leads it to the lack of risk and responsibility consciousness. The managementconsciousness isn’t adapted to the requirement of the market competition. Third, thedecision-making level of credit is low and dispersive. Fourth, the level of originator of creditbusiness is low and the credit management covers many levels, the work in credit management isrepeated occasionally. Fifth, the behavior of credit management is casual and the power ofexecution is weak, the management is mere a formality. The thesis suggested that the delicacymanagement in credit business of Agriculture Bank of China Jilin Branch is adapted to thenew situation of joint-stock commercial banks and the fast change of economic andfinancial environment. It is a necessity to realize the benign development ofmanagement. Secondly, the general demands and objectives are confirmed. The core steps aremodified and optimized such as the system, process, products o credit business,post-loan management and information management. Finally, the refinement ofoperation and standardization of management is achieved.Thirdly, in order to realize the delicacy management of credit, propermanagement and operation concept should be established. Stick to the stableoperation and credit risk management to the whole process of the exploit of lendingand borrowing business and marketing. Reinforce the compliance management andoptimize the cultural construction of compliance. The importance of compliancemanagement should be realized by the management and operational employees. Theexecutives should take the lead in compliance and advocate honesty behavior normsto cultivate the compliance culture of credit and to perfect the credit management.Accountable framework of responsibility should be constructed to modify the creditmanagement mode aiming at the centralizing, delayering and professionalizingdevelopment. Reception office includes corporate business, individual business, andbusiness of agriculture, farmer and rural area. Divisional system reform should becarried out according the requirement of increasing the corporate business anddeclining the individual business, which can realize “one business with a singleaccounting system”. The cost will be accounted separately and the benefits will bechecked separately. Credit credentialing Center should be established to realize theoperation centralized and specialized. To enhance objective access management andestablish performance assessment system, insisting on People first, further completethe promotion mechanism of staff and salary incentive mechanism; establish positionmanagement system of credit officers and promotion mechanism to realize thedynamic integration of debt, right and interest of lending officers.By the above analysis, it can be found that delicacy management is the mosteconomical and optimized method to reach the business objective. After theshareholding reform, Jilin Branch of Agricultural Bank of China has to transform theextensive management mode into delicacy management with perseverance, which will enable the management of credit keeping improving and normative. By delicacymanagement can elevate the core competitiveness of Jilin Branch in the financialinstitutions and guarantee the maximizing value of credit assets.