If this system can strengthen the capability of operational risk management, integrated risk management and control over groups and connected customers will be pushed forward throughout the whole bank.

After more than one-year endeavor, China Construction Bank (CCB) has launched Corporate Lending Process Management System (CLPM system) in Xiamen branch and other branches on a pilot base. The launch of the system will promote the sustained improvement of asset quality and profitability in an effective way.

Reportedly, CLPM is an operational platform of corporate credit business under risk management for enterprises, with various functions of business support and risk control including credit authorization survey and approval, lending, monitoring after loan, special assets resolution, group customers management, security management, credit line management. It is based on the integration with calculation system, internal rating system, customers information system. And it also provides corporate credit services, such as project-based loan, liquid-asset-oriented loan, trade financing, bank guarantee and credit acceptance.

It was introduced that CLPM system began to be phased in based on the re-establishment of business process and learned from advanced credit management model of international banks. With customer-focused philosophy, CCB initiated the E-processing platform to improve its services efficiency ranging from credit authorization survey to special assets resolution so that credit risks and operational risks can be managed in an effective and efficient way. Its establishment will standardize CCB’s operational process for corporate credit, change the old habit of manual operation, control the random habit of operation, and play a positive role in creating an advanced credit culture.

CLPM System fixes the business process into the system to realize the standardization of transactions and to ensure the effective implementation of credit policies. It also realizes integrated process of cross-organization transactions, and monitors data quality through the whole process of transactions in line with credit policies. In this way, the centralized, integrated, accurate and timely data base will be built up to meet the needs from regulatory bodies and investors over information disclosure. This system also can conduct qualitative credit risk evaluation via integrating with the internal rating system and financial analysis tools. And through identifying warning signals and reminders, it can support the early warning system of credit risks to continuously improve CCB’s asset quality and profitability effectively.

It is informed that CLPM system can strengthen the capability of operational risk management through establishing all-round compliance investigation mechanism and track remaining method, manage and control risks born by groups and connected customers throughout the whole bank by drawing the whole picture of them.