The Impact of Banking Industry to Collecting Overdue Loans by Non-Performance Loan(NPL) Center －An Example of Taiwan Cooperative Bank

• Main Authors: Chung-Hsien Tsai, 蔡仲賢
• Other Authors: Jyh- Chau Yang
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/52498268264427007012

碩士 === 朝陽科技大學 === 企業管理系碩士班 === 99 === Since the privatization of the banking industry, many banks began forming regional centers, with the aim that centralizing banking operations in order to enhance its competitive advantage. Theoretically, centralization of region area of the bank leads to the following advantages of the bank: 1. Specialization of staffs; 2. Better quality control of assets; 3. Higher efficiencies of resources allocation; 4. Well operation of objectives management. Although the creation of regional centers has created those advantages, operational problems also be arisen when establishing new entities. Thus, the bank must make adjustments to minimize side effects, including: 1. Personnel instability; 2. Power conflicts between new entities and pre-established committees; 3. Customers may uncomfortable to banking policy changing; 4. Redundant problems; 5. improper allocation of personnel. Using annually accrued data of overdue loans, this paper takes an introspective look on the Taiwan Cooperative Bank’s regional Non-Performing Loan(NPL) centers. The collected data ranges from internal memos, documents, to monthly overdue loan data of involved entities. This data was collected between December of 2003 and December of 2010 and contrasted between the two years prior to establishment of regional centers and the following five years period. The research contains excerpts from the interviews of select personnel from the six regional NPL centers. The selected personnel have each remained within the debt collection division of their respective regional centers since the inception of their division, they have not yet been transferred nor replaced. After analyzing the data, the operational function of the NPL centers and challenges of each center are reviewed. This article has found out: 1.The establishment of regional centers, let the quality of bank assets becoming significantly better. 2. Post-establishment of centers, minimizing of personnel movement in the divisions can prevent decreasing in operational efficiency. 3. Reduction of the movement of personnel in the collection division also prevents loss of human resourses, even improves operational efficiency. 4. Post-establishment of centers, restructure of responsibilities make local branches focus on processing of in-depth loan decisions, increasing operational efficiency. 5. The reward system of the center should be based on encouraging staffs’ strong motivation of hard working, any kinds of reduction to compensation or workplace unfairness will cause damage of the bank.