Of core business systems to prevent the risk of bank accounting feasibility study

[Paper Keywords] Bank accounting core business systems
[Abstract] This paper analyzes the risks and the Development of the traditional banking business, based on the core business of the foreign system, system integration, customer-focused, risk management ability and other advantages, combined with domestic and international banking and accounting differences that exist Development difficult to raise questions about building our core banking system, measures and suggestions.


I. Introduction

Since the end of 2006, the gradual opening up of China's financial market, foreign banks continue to enter, plus the 2008 financial crisis, the banks bad debts soared, funding has shrunk dramatically, to bring unprecedented pressure on China's banking sector and the impact of social capital as commercial banks intermediary and clearing house activities, have to spend more money and manpower, the introduction of international advanced experience and management systems to improve their ability in all aspects, especially in response to accounting risk and reduce the increasing loss of profits caused by the bank management attention.


Second, the risk of bank accounting and Development of forms

Bank's internal accounting management agencies and grass-roots sector of the accounting business, due to various factors, actual income and the bank's departure from the expected return occurs, and thus the uncertainty of loss, that constitutes a risk of bank accounting. From now, mainly for the following aspects:
First, accounting information distortion in the process of risk. We all know, banks and wide distribution network, customer service and convenient so to win the market, which exists in the accounting aspects of some branches may exist, which do not ignore the laws and regulations and standards, unlisted business accounts such as the abuse, alteration accounts table, false accounting, false data, so that the bank's assets, liabilities, equity accounting is untrue, cause major Economic losses and the occurrence of major cases.

Second, the various bills settlement risk. Current bank bill business involving the company or personal check general, commercial or bank draft, easy flow of the advantages of them to significantly reduce the cost of business or personal time, but due to bank's internal risk awareness weak, and operating procedures are not standardized, the system is not tight, coupled with the continuous Development of science and technology, intensifying the financial instruments of crime, fraud in the form notes from internal collusion collusion collusion between the inside and outside the escalating evolution.

Third, the joint line and cross business risk. Accountancy firms and cross business risk associated primarily from the banking system, electronic transfer, internal exchanges, clearing transactions between business and banking institutions and other sectors, as these links are bound to have some funds in transit time, thus would produce a certain risk, especially in terms of capital settlement there is a big risk. mainly for the illegal operation of accounting personnel, the exchange stamp theft, forged bill of exchange, theft interbank funds, the banks have become increasingly frequent occurrence of accounting risk , cross-bank financial security under serious threat.

With financial globalization, financial transactions electronically and the Development of diversified financial instruments, bank accounting business processes and other forms of work organization has undergone tremendous changes, the banks also showed multiple accounting risk, multi-level, diversified trend.

First, under the condition of the network, the bank implement comprehensive counter system, using a variety of counter service integrated business system, each teller window open as long as the authorized public will be able to deal with the foreign currency deposits and loans for private businesses and various types of settlement , charges, agents, and other intermediary business, so that the risk further.

Second, with the continuous generation of a variety of financial products, banks continue to increase the scope of the accounting business, banking, savings from a single tradition, cashier, accounting and other business, the development agency funds, insurance, securities transfer, collection of telephone , electricity, cable TV fees business. the line launch of a variety of financial products is even more dazzling, the business profits to the bank, but also brought new risks.

In addition, financial transactions, electronic Applications and network development, so that more rapid financial flows, short-term, trading fast and quick development of more obvious characteristics. In speeding up the transfer of funds, but also increases the risk, speed the transfer of funds speed up, crime is more difficult to detect more subtle.

Third, the core business systems in the prevention of risks on the Bank Accounting Advantage

Building a new generation core banking system, through the implementation of changes in information technology to improve core competitiveness, which has become China's financial industry's most important work. At present, there have been some cases the introduction of such systems before the C3 CITIC Bank and Bank of China and Huaxia Bank BANCS system under development. Although the introduction of China CITIC Bank in a variety of external factors and mortality, the introduction of the Bank of China and Huaxia Bank have not yet the result, but the trends from the large, comprehensive introduction of China's core business system software is the only way the banking information.

Core banking system is the heart of the operation of banking system, where everything about the deposit, loan account in the core business operations are complete business system. Its principal activities include: customer information management, deposits, loans, general ledger and the These deposits, loans and other accounts of the day operation. The reason why modern core banking system is widely accepted around the world, because it can be for data, risk and customer uniform allocation of resources, but also shape the core of each bank personalized competitiveness. The prominent advantages are mainly manifested in several ways:
(A) the customer-centric framework can effectively reduce the risk of bad debts credit risk and accounting
A new generation of core banking systems of foreign basic Application design structure is built on the basis of customer-centric, and can make the bank full collection, preservation and use of information on all aspects of customers for the bank to start from the customer, reduce business risk, improve service levels to provide basic data sources. Meanwhile, the CIF system built on top of this core banking system for future product innovation, customer service sub-level provides an effective decision-making information.

(B) to provide fully integrated system to meet the needs of a variety of products
The new generation core banking system, foreign prospects use and are fully integrated with background processing, the system can be any of the features any user in the effective authorization in any body to visit a variety of ways, and integrates capital and trade finance system. its integrated general ledger system for the bank to provide true "one account" feature. in the domestic commercial banks to complete the geographical sense of "vertical" big focus at the same time, many banking systems to provide "horizontal" centralization. The system uses open standards, follow the modularization, and standardization of design parameters, fully embodies the software flexibility and scalability. Good architecture design to a new generation of core banking systems abroad can quickly adapt to future Computer technology, and this change can be used to bring the technological advantages of banking systems. In addition, a new generation of core banking systems abroad, independent of the characteristics of the service channels to facilitate a variety of service channels and front-end system product / interface or are other systems interconnection.

(C) a strong risk management system can improve all aspects of risk management
Bank's risk management point of view from the Application of Computers can be divided into analytical and operational risk management categories. Foreign next-generation core banking system provides a wealth of operational risk management functions, such as: customer credit limits and management of collateral management, lending process management, debt collection, early warning processing, data security management, transaction security management, logging, offline transaction functions, from the customer level, industry level and currency levels increased ability to resist risks. At the same time as the analytical risk management provide a rich source of basic data. In addition, by defining two mutually independent and each backup server partition, and then in the two partitions on each run a set of core banking system, the end of the day when the batch system, by task switching between the two partitions to achieve the support of 7 × 24 hours a day to work non-stop bar account, effectively reducing the risk.

(D) high degree of internationalization, with the world can reduce the risk of cross-border accounting
Foreign support for the new generation core banking system, multi-agency, multi-languages ​​(including Chinese), multi-currency. Institutions can be regional, national and auxiliary entities, each agency can use their own language, currency, local reports and products, each institutions may be defined as an entity down the number of branches, branch or subsidiary of the department.

Fourth, our core business systems, the introduction of Western accounting Difficulties

Some banks in China have adopted various forms of trying to build a core business system, but by the management, business scope and limitations of hardware and software level, the Applications built in functionality and performance have certain defects, and Exotic's improve the maturity of the foreign core system may not be able to quickly adapt to China's "soil", from an accounting point of view of the main difficulties in the following areas:
(A) domestic and international accounting differences in management philosophy and system
Foreign banks generally implement an accounting system, the total liquidation of capital between branches set up a transitional system only accounts - Total branch exchanges, the total branch share the account, interest-bearing mutual funds are not occupied, while the total branches of domestic banks to implement more level accounting system. abroad is not the core business systems within the financial settlement system function, the total branch current accounts can not be outside the settlement funds. according to the financial management system of domestic banks, branches, as one business unit, with the head office of the need for mutual fund transactions interest, and therefore need to open a settlement account on its financial relationships within the system. As accounts too many levels, some branches the number of transactions within the account even more than the current account, the potential increased risk, not only takes up a lot of Computer resources, cause the system to deal with slow, long time batch processing, month-end, end of year deal with pressure, but also increases the localization of foreign core business systems and customer-oriented workloads. reposted elsewhere in the Research Papers Download http://www.hi138 . com (b) of the difference between bank capital management system
As a result of head office of a foreign bank account, the branch is seen as the head office of the marketing front, the customer is the bank of common resources, so loans can be simplified as lending between banks and customers relations. Bank loans to customers are areas of financial accounting, processing from the core business systems; the total amount of funds used between branches and the distribution of benefits of bank areas of the internal redistribution of interests, you can plug-in modules accounting management accounting. The level of domestic bank account number, the system complex relationship between various levels of funds, some banks in order to strengthen financial management within the system, the implementation of the practice of borrowing within the system, the specific implementation of the issuance of a loan, recovery, etc, the total interest-bearing, among branches within the loan processing system binding association. such needs to achieve in the core business systems, you need to make significant changes to the system.

(C) "down from the Interest"
Down from the interest rate is sometimes called "interest rate late," referring to the holidays, for some reason, the effective date of the actual interest rate to the system in advance before the current date, especially with the recent Golden Week and other holiday there, down from interest rate is much higher than the foreign. At present foreign core business systems can not handle this problem, in full accordance with the automatic processing requirements of domestic banks to transform the system also has some difficulties.

(D) access control across branch
Foreign banking institutions to set flat, vertical branch sales by business head office is the front-end products, so the foreign branch of the system generally do not have access control across the concept of free access between the various branches, many modules do not need to have permission to cross-branch restrictions, a branch can alter one another branch of the business. As the domestic and offshore banks to manage different, so it is prone to the wrong branch of head office account problems in mind. Even if suppliers do not want to change, from the perspective of risk control Similar differences need to follow to modify the existing model of domestic banks.

In summary, due to the different degree of development of domestic and foreign markets, the bank's external regulatory environment and regulatory system different, the bank's internal management system, business processes and operations have very different habits. To resolve these differences will directly affect the level of The success of the project size and risk, requiring the participation Founder, as the differences, a common face and share the project risk.

Fifth, effectively core banking system accounting Suggestions risk aversion function

(A) a clear business strategy
Business strategy is the cornerstone of the core system. Shareholding commercial banks are required to internal and external environment, system conditions, analysis of market changes and trends, according to bank development goals, develop appropriate business strategies. In the building of a new generation of core system, also need to their actual situation, the balance of trade-offs, establishing the priority of business strategy, implementation timing, must not blindly pursuing big perfectionist.

(B) of the business structure that matches the design
Business structure is the core system of the soul, to guide the construction of a new generation of the global core system. China's banks should carefully study the structure of customers, products and services, competitive position in the market, clearly the focus of competition, carding his order qualifiers and won the elements rational planning of functional products, innovative products, with information technology vision, designed to match the efficient supply chain, rapid response supply chain.

(C) define the appropriate Application architectures and data structures
Application architecture and data structure is the core system of the "skeleton." Application architecture and data structure are interdependent and must be closely integrated. Business structure-driven application architectures and data structures, application architecture and data structure must support the business architecture. Application architecture and data structure model of the design thinking should be adopted, according to business structure, and establishing a data model, workflow model, functional model.

(Iv) develop long-term integrated planning
Bank of China building a new generation of core system, there are many of the constraints, is a long period of gradual process, a long-term master plan must be prepared, in parallel with the bank re-established as the leading decision-makers to the highest level of internal coordination system, the correct handle the balance between strategy and tactics, and steadily promote implementation.

(E) with networking, virtualization vision expanded the definition of an open platform for flexible
An open platform for flexible expansion of the steady implementation of the new generation of the key core system, our banks need to network, virtualization vision to be defined, the construction of a new generation of core system simplification from complex, phased, step by step, sub- module for the "big core" of the small building, creating an open platform for flexible expansion.

In short, the core banking system, the advantage in all aspects of accounting and business development on the banks a huge impetus to learn and the introduction of China's banking experience and its advanced systems have become a big trend, although there is still a long way to go, but I think our banks in the accounting risk prevention capacity will gradually increase.


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