The Application Of Strategic Management Accounting In Commercial Banks Of China

The international and domestic economic and financial situations continue to develop and change since 1990s. With China's banking industry completely open to foreign countries, the powerful foreign banks have increased the intensity of competition for the Chinese market, commercial banks of China have formed a huge threat and unprecedented challenges. Faced with such fierce competition, commercial banks of China must be managed from a strategic perspective. The strategic decision-making needs related information. The implementation of Strategic Management Accounting (SMA) will meet the maximum needs of all of these strategic decisions. By using Strategic Value Chain Analysis, Strategic Cost Analysis, Competitor Analysis, Activity-Based Costing and other technical methods of SMA, commercial banks of China will ultimately establish the strategic competitive advantage in the industry. With the help of SMA, the decision-makers of commercial banks will build the overall development plan on a strategic vision. The implementation of SMA will exert a profound influence on the development of commercial banks.First of all, this article collates and analyzes some previous literatures on SMA, including the overview of SMA, the features of SMA and so on, so as to provide theoretical support for the application. Secondly, combined with the development status of China's commercial banks, this article analyses the necessity and favorable conditions of the implementation of SMA in commercial banks. And then, based on four stages of Strategic Management, this article introduces some basic application methods of SMA. Finally, this article analyzes some problems in the application, and put forward some suggestions for improvement.