ORIGINAL ARTICLE
Cash Operation Risk Management of Mount Putuo Commercial Bank
in Zhoushan City
Sichen Lin*
Zhejiang University of Finance & Economics, Jiaxing 314000, Zhejiang, China. Email: [email protected]
Abstract: Due to the relatively inconvenient traffic conditions on Mount Putuo Island in Zhoushan City, commercial banks faced the problems of long cash escort routes, potential risks in social management and many uncertain factors after the banks setting up their institutions on the island. The island is relatively independent and rich in tourism resources. With the construction of the comprehensive bonded zone, Putuo's economic development has been continually developing, and the amount of cash withdrawal has increased significantly. Therefore, Mount Putuo Island Commercial Banking Institutions were selected to conduct a field survey. This article analyzes the specific situation of internal cash receipts and payments, and cash transfers with islands outside the island, and the major risks faced by various financial institutions operating on the island, and analyze how to solve the problem in combination with the existing environmental situation in Zhoushan City method.
Keywords:Commercial Bank; Cash; Management; Risk; Management
1. Current characteristics of cash circulation in Zhoushan City Islands
Putuo Mountain (Island), one of the four famous Buddhist mountains, is a place where small notes are returned, especially coins. Mount Putuo Island covers an area of 12.5 square kilometers. There is obvious seasonality (spring and summer predominance) between pilgrims and tourists on the island in the early days of opening. In recent years, the opening of the cross-sea bridge on the Zhoushan City Islands has made the seasonal factors of passenger flow on the island no longer obvious. According to Mount Putuo Tickets according to the statistics of the management office, the total number of incense tourists in Putuo Mountain in 2017 was more than 16.22 million. During the religious holidays and holidays, incense tourists concentrated on the island, crowded people, from all over the country's passenger flow for Putuo Mountain brought a lot of cash. Small-denominated coins and other currencies have taken up a huge amount, accounting for 1/2 of the province's currency withdrawals. In particular, in other places, pilgrims will be interested in carrying small-denominated banknotes in the scenic area for circulation, in which the small-denominations currency will have a relatively large amount of withdrawals. The main source of cash is donations from believers (mainly small tickets) and other services such as tickets. The total amount of bank notes of 1 yuan and less is up to 200 million yuan from the central bank.
Most of the money donated by pilgrims to Putuo Mountain is in the form of less than 10 yuan, and the small denomination notes are mainly used by Fujian tourists. Zhoushan City City has never been under the jurisdiction of the past years coin delivery has never been tight, commercial banks actively in the province to carry out horizontal links, for many years has been to the cities outside the jurisdiction of the large number of coins.
Copyright © 2020 Sichen Lin doi: 10.18686/fm.v5i1.1607
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The small denomination of cash on all islands continued to be released, and the deposits of coins held by residents on the island became larger and larger, and a large number of coins were "sleeping" in folks, causing waste of resources.
The Zhoushan City archipelago is a vast sea area, with a long distance between counties, as far as hundreds of kilometers between the two places, and dozens of kilometers between the nearest areas. The size of the county is small, the population is only tens of thousands. Due to the special geographical location and population environment, the island county is dominated by fishery. Although the inherent wear resistance and high turnover rate of the coins, they are heavy, inconvenient to carry, and easy to lose. Coins are not easy to carry, this phenomenon caused by the deposit of coins is very serious, the islands only continue to store coins, due to the lack of coin facilities, residents in the home coin precipitation is increasing, to reach saturation after the financial institutions to return coins shipped out of the island is difficult.
2. Problems in cash money management
Due to the huge amount of cash withdrawals in Putuo Mountain, the financial institutions of Putuo Mountain Island have a heavy workload in counting the whole points of paper money and the coins returned, resulting in the frequent occurrence of employees working overtime to clean up the inventory notes and coins.
The coins returned from Putuo Mountain cannot be digested within the entire area of the Zhoushan City Islands, which has become a heavy burden on the People's Bank of China and various financial institutions. It takes a lot of time and business energy for the entire bank of Mount Putuo to take a clearing. Take the Agricultural Bank of China as an example, the bank cleaned up and classified the hiring of 5 outsourcing personnel, during the peak season, the whole point is insufficient, more than 20 employees of the Putuo Mountain Branch of the Agricultural Bank of China have to work overtime once a week to conduct a centralized inventory, in the off-season, too many outsourced personnel only need 2-3 people enough. During the peak season, due to the inability to clean up the inventory in time, leading to more commercial banks inventory pressure, small denominations of banknotes have been accumulated in the warehouse, can not be handed over to the people's bank in time, and the use of small denominations of each network of money is not much, the long-term accumulation of cash in the treasury moldy, stink, adhesion, resulting in the difficulty of re-counting.
Coin handling is difficult and labor intensity is great, it needs to be loaded and unloaded many times in the course of handling, and the packing of coins is easy to break.
Entering the Putuo Mountain scenic spot must be by boat, and the commercial banks in the scenic area use the mode of weekly fixed day transportation to centralize the cash received in the scenic to the branches of the people's Bank of China at the Zhoushan City municipal level. Not only does this approach keep every commercial bank busy, but the pressure to arm the is costly and unsafe. This situation has led to a long period of heavy workload on the part of financial institutions and Anbang companies (cash-delivered companies) in inventory of currency, packaging, transportation, etc.
The increase of coin return is accompanied by the difficulty of handling the damaged coin return. Due to the large amount of money collected in the small denomination of Putuo Mountain, and some coins were recovered from the pool, the damaged coins increased accordingly. On the other hand, the whole fishing area of Zhoushan City islands aquatic products trading and daily currency circulation inevitably make coins contact with sea water, this way more easily corrode the surface of coins, resulting in coins rust, according to statistics commercial banks now have 420000 damaged coins, these currencies are stacked in warehouses for a long time, each bank wants to dispose of these damaged money.
3. Specific measure
Since the launch of the auxiliary currency coinage pilot in 1992, Zhejiang Province, as one of the six pilot areas, has carried out the auxiliary currency coinage work very effectively. After years of coin placement, the amount of coins held per capita has been very large, but due to the easy deposit Inherent characteristics, the large amount of coins
deposited affects the withdrawal and efficient circulation of coins. The number of small denomination banknotes of less than 1 yuan and the area in which they are placed have been reduced year by year throughout the country. The small denomination of less than 5 yuan returned from Putuo Mountain currently accounts for 1/2 of the province's currency collection. In order to further speed up the return of precipitated coins and improve the turnover and circulation efficiency of coins, Zhoushan City coin self-circulation work, not only focus on Zhoushan City City, but require the provincial branch of the people's Bank of China to highlight the self-circulation in the whole province, in order to improve the circulation and circulation of Zhoushan City coins in the whole province.
(1) To facilitate the exchange of small denomination currency for pilgrims and tourists in Putuo Mountain, and to build a convenient service platform for the exchange and delivery of small denomination banknotes.
In order to reduce the amount of cash brought in by pilgrims and tourists, to make the cash of Putuo Mountain scenic spot turn around in the region better and to enable passengers to improve the service level of Putuo Mountain with assured money and good quality cash, it is necessary to sort out and analyze the cash flow situation in the region and to focus on upgrading the service level of Putuo Mountain tourism in the overall scheme design. Through the coin exchange terminal, the small banknote exchange terminal and the professional banknote matching service team, it will be more convenient and professional to put in the small face value banknote for the scenic spot, so that the pilgrims and tourists in Putuo Mountain scenic spot really do not need to bring the small denomination currency, and pay directly with the large denomination currency or the bank card.
At the Putuo Mountain coin exchange point, if the small coin exchange business can be provided at the Zhengshan Gate of Putuo Mountain, pilgrims and tourists from other places do not need to bring small cash to Putuo Mountain, which can better improve the level of tourism environmental services in Putuo Mountain. Make reasonable arrangements for the specific location of the coin changers in five commercial banks, and set up a machine to exchange large banknotes with coins and small banknotes near the entrance of each major monastery in Putuo Mountain to facilitate the exchange of pilgrims and tourists.
Emphasis should be placed on monitoring currency returns in each region and the needs of tourists over time. (2) Introduce the way of coin self-service exchange machines, increase investment in coin sorting machine equipment, optimize layout, improve coin recovery and sorting processing capabilities, and effectively guide and accelerate the return and circulation of deposited coins
While actively pursuing economic benefits, financial institutions should assume social obligations. Where financial services are lacking, they should adopt mobile service methods to provide remote villages and households with the supply and exchange of small banknotes. Keep the funds flowing smoothly, and really play the role of accepting and cleaning the funds " reservoir ".
Except for Putuo Mountain, other islands around the country mainly construct coin exchange machines to solve the problem of coin deposits, and achieve on-demand, on-demand settlement, which meets the needs of the public and the public. A complete coin circulation service has been formed and has been recognized by the public. According to the survey, the maximum daily processing capacity of commercial banks to configure a coin deposit changer is 70,000 coins, which is equivalent to the manual processing ability of 4-5 skilled bank employees, which saves time for customers and improves the service experience.
(3) Do a good job of publicizing the freely convertible coins
Through major media's interviews and reports on the layout and exchange of coin exchange machines at various banks, as well as publicity on the Internet, it has received widespread support from the public, and the effect will come out soon. As a popular project, the People's Bank of China and the For the high-quality services of various financial institutions, all banking institutions should make full use of the RMB publicity campaign platform and extensively carry out promotional activities with the theme of " saving resources, turning coins, and starting from me ". Strictly implement the " first exchange accountability system " for coins. The People's Bank of China will severely punish refusal and shoving behaviors in accordance with the "Regulations on the Administration of Renminbi." Let
come to Putuo Mountain to enter incense and visitors can use large-denominated banknotes to convert into coins (50 pieces for 1 roll, converted into rolls). In the service media of Mount Putuo, financial institutions, through guided tours, regularly publicize among pilgrims and tourists, so as to provide exchangeable information for pilgrims and tourists who regularly come to Mount Putuo and their relatives and friends when they come to Mount Putuo, and to reduce the introduction of small denomination currencies, especially coins.
(4) Strengthen the collection and destruction of damaged coins according to the actual situation, and open up the key links of coin self-circulation
Zhejiang Province is the first region in the country to drop coins. It has been more than 20 years since the coin was officially put in 1992. From the wear of the coins, some coins have reached the end of their useful life. In line with the principle of seeking truth from facts, the people's Bank of China should sort and destroy the corroded and worn coins extracted from the pool by Putuo Mountain according to the prescribed standards. Banking institutions in the jurisdiction of unfamiliar, sporadic customers holding large amounts of damaged coins, as far as possible to provide exchange services, resolutely confiscate counterfeit coins. In order to deal with the large amount of damaged coins in places such as waste incinerators and temples, the physical management of the warehouse should be strengthened in order to free up more storage capacity and pile up the damaged coins.
(5) Improve the ability of coin sorting and processing, and strengthen the horizontal adjustment of coins between financial institutions
It is very necessary to provide equipment and manpower support to improve the ability of bank coin cleaning and processing with more money back.
Public transport companies, subway companies and other coins holding large currency return merchants to open the bank in line with the "customer first" concept, optimize cash services, as far as possible for the purchase of currency return of large customers do not have the conditions to provide coin sorting equipment support.
On the one hand, it reduces the cost of depositing bank coins by the money-released merchant, on the other hand, it improves its coin-clearing ability. At the same time, banking institutions must provide the necessary commercial tenant support to large-scale households. Technical guidance is provided throughout the coin sorting process to improve its business processing capabilities.
4. Summary
With the rapid development of China's economy, the cash service is still one of the most traditional and important businesses of commercial banks. Putuo Mountain, as a small island in Zhoushan City Islands, has such huge cash throughput that it is of great significance to study the operation and existing risks of cash business and how to solve this problem for the future development of Zhoushan City. The essence of finance is service. Only by continuously reducing losses, reducing risks, and bringing a safer consumption environment to financial consumers can the country's economy develop more steadily. Therefore, there is a far-reaching impact on our business and financial awareness to study the banknote business of commercial banks and the existing risks, and to use the current financial knowledge to talk about our own views, put forward and implement effective risk prevention and control methods.
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