The Research Of China Commercial Bank's Economical Capital Management And Operational Risk Control

In the past 20 years, the focal point of the management of banks has turned from asssets and liabilities to risks. The management committee of Basel Bank issued the New Basel Capital Accord in 2004.It introduced the conception of operational risks and claimed banks to collect capital for operational risks especially. The conception of economic capital has been applied extensively. However, the domestic commercial banks haven't known it yet. We should allot capital for operational risks and estabilish a new management model of risks.The economic risk is a kind of capital, which is used to resist the loss that cannot be anticipated. It is drawed by the degree of capital risk. The core of the theory of economic capital is that the capital must marries the risk. It is not a real capital but can be concluded by calculation. It is equal to unexpected loss. It is the true risk for banks because they cannot take it into the costs of management through extracting reserves. It needs be digested by capital. The all definition to operational risks have stressed the inner operations. The staff, the procedure and the systems are all the factors of the operational risks.The management of economic capital includes the calculation, the allotion and the achievement assessment.We still have many problems to carry out the management, such as the lackness of technologies, the supervision capital and the present financial policies. To introduce the management of economic capital is an important transformation of interior control of Chinese banks. The present system of our commercial banks lacks a efficient encouragement and restrain mechanism. The operational risk is a kind of inherent risk. It depends on the structure of system of banks. The most important factor is to set up an encouragement mechanism. Now there're some defects in our banks which hinder the mechanism to take shape, such as the property rights of the state banks, the structure of the management and the inner control. These defects have intensified the personal opportunisms.To estimate the operational risk is the basis of allotting the economic capital. The New Basel Capital Accord provided three method to calculate the economic risk.Combining the theory with the domestic situations, we should take the elementary index as the temporary goal and the inner measurement as the forward goal. We should record every risk first and then analyse it so as to establish a data bank. To cover the risk with capital is the basic principle of banks. In the framework of modern commercial banks, the ability of development of banks is determinded by the ability of capital. The management of risks must be on the basis of economic capital. We should establish encouragement mechanism to realize the economic capital system.