Study On The Cost Management In The Branch Of The Industrial And Commercial Bank Of China In Xi'an

In the process of China's accession to the WTO, China's financial market will open more widely to the foreign world, and the competition between banks will become more severely. In order to enhance the integral competences in the competition, our state-owned commercial banks are deepening their reforms to perfect their structures and organizations. However, what is the most important for the development of the commercial banks is how to carry out the advanced management mode to improve the cost management, as it is crucial for the conversion of the managing mechanism of the state owned banks.At the beginning of this paper, the author briefly investigates the relation of the development of the modern commercial banks to the cost management and summarizes the total cost management theory. By reference to the successful practices of foreign commercial banks, he points out what our state-owned commercial banks should learn from the foreign banks. By elaborating the changes in modern financial development and demands for commercial banks and analyzing the practices in the branch of Shaanxi of the Industrial and Commercial Bank of China, he thoroughly discusses a series of issues in cost management in the branches, and put forward a point of view that it is imperative for the branch to push the bank's total cost management theory into practice. He proposes that the branch's management should be focused on value management, with a goal to comprehensively control its management cost. The branch should promote its conversion of management mode and mechanism to improve its competitiveness and benefits. Further, by reference to the methods and practices in total cost management theory, he provides the methods for establishing the total cost management system and for carrying out the total cost management control, and points out what is most important in the work. Finally, he analyzes the possible obstacles in pushing the total cost management, and gives some practical proposals.The problems and measures proposed in this paper are based on the total cost management theory and the requests of the branch in cost management practices, therefore, they are both theoretically and practically exercisable. The marketing cost mode and customer value identification mode given in the paper is practical and referable for other banks. However, some problems, such as inspiring mechanism in cost management and price fixing for bowel capital, are still to be further investigated.