Reform of CMBC Business Department Drove Financial Market Business Boom

2007-10-19

Financial News
Recently, China Minsheng Banking Corp., Ltd. (CMBC) held a launch ceremony for Business Department quietly in Beijing, announcing to set up the first corporate finance departments, including the Trade Finance Dept., Financial Market Dept., Investment Banking Dept. and SME Financing Dept. As an important content in the five-year plan of the new CMBC Board of Directors, this subversive institutional reform in the bank not only paved solid foundation for CMBC to construct core competence and realize rapid and stable development, but also quested for a new road for the institutional reform of Chinese banks.
Dr. Yan Junwei, President of CMBC Financial Market Dept.
Doctor of Economics used to work with ICBC Shanghai Branch, and served as President of branches and Assistant President of branches, then the Standing Vice President of the International Bank of Paris& Shanghai. Joined in CMBC in 1998, and used to serve as GM of the International Dept. and Office Director. From August 2001 to February 2002, went to the University of Chicago as a senior visiting scholar. Now, the President of CMBC Financial Market Dept. He has profound knowledge of the management of multinational banks, asset securitization, derivatives and financial engineering.
As the first department initiating the business department reform in CMBC, the predecessor of the Financial Market Dept. is the Capital and Capital Market Dept. At the beginning of the year, CMBC carried out a series of reforms, such as the business integration, framework construction and team construction, to its financial market businesses, and renamed the Capital and Capital Market Dept. as Financial Market Dept., which indicated that the diversified, professional and marketized management pattern that brought CMBC’s financial market businesses in line with internal practice had come into being. In September, the Financial Market Dept. officially initiated the business department reform and the organizational structure, management pattern and function positioning of the Financial Market Dept. had all changed correspondingly.
Recently, focusing on some hot issues concerning CMBC business department reform and the recent and next reform, as well as the business development that peers concerned, Dr. Yan Junwei, President of Financial Market Dept., made some expatiation and outlook.
Question: What changes will the reform of business department bring to the Financial Market Dept.? What targets will the reform expect to achieve?
Yan Junwei: the business department reform of the Financial Market Dept. is a vertical management system that is geared to international standards, which has referred to the operation experience of the profit center of the business department in the international banking industry. The business department reform realized the unified management of human resource, property and materials, and the integration of responsibility, right and benefit. The deregulation of rights to departments will boost work efficiency, speed up the response to the market, change the original weakened incentive and restrictive mechanism, and fully mobilize the enthusiasm of employees; the business department reform is helpful to bring the innovation capability into full play, and set increasingly strict requirements on technical innovation, speed innovation and risk management technologies. The business department- based operation is a significant change in the profit pattern and marketing mode of a bank, a material institutional innovation in integrating resource allocation of the bank and optimizing its management system, also a great practice realizing business specialization and intensive management, which has left broader imaginative space for the development of financial market businesses.

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