A Study On Economic Capital Management And Its Application Of Commercial Banks In China

Banks are risk-managing enterprises,and it's very important to resist against the risk.The capital of the bank is the last barrier against the risk.In the recent more than ten years' time,western banks have gradually formed a completely new risk management facility--economic capital management.By the capitalization of risk,it realizes all-around measurement of risk and the utilization is more and more popular and becomes widely accepted risk management pattern by international banks. Economic capital management is a new and advance theory of commercial banks' risk management and it represents the core of bank's risk and value management in the future.This thesis includes four major parts:The first part is fundamental theory.This part mainly introduces relative concepts and theory about economic capital.We definite the concept of economic capital, introduce the difference between EC and book capital,regulatory capital.The second part is to briefly introduce the development of western economic capital management and particularly present the system of EC management of western commercial banks,which includes the measurement and distribution of EC and the assessment of bank's performance.The experience of EC management of western commercial banks gives us a lot of apocalypse in the bank's developing strategy,the exact measurement of risk,the foundation of internal system of performance and the adjustment of bank's business.The third part is the main part that shows the operation of EC management of our domestic commercial banks.After briefly introducing the implementation of EC management of main large commercial banks in China,we conclude the embarrassments of them in carrying out the management of EC.Then,we present the system of EC management in a big join-stock commercial bank.Through analysis of one of its branch's situation in EC management,we can see that the problems of the implementation of economic capital management. The last part,we come to a conclusion,the implementation of economic capital management is essential.We give some strategic suggestions to improve their economic capital management that can enhance the value of domestic commercial banks.