Research On The Applications Of Total Cost Management In Commercial Banks

Based on the analysis of cost management situations and problems in China's commercial banks, this paper first reviews the advanced experiences of cost management in foreign commercial banks, and then proposes the framework and relevant measures of establishing the total cost management systems in China's commercial banks. This paper focuses on the implement of total cost management in branch layer, which could enhance the strategic management level, prevent the operational risks, boost the profitability and therefore increase the competitiveness of commercial banks. In order to achieve these objectives, this paper mainly addresses the following three key issues:1. The feasibility of implementing total cost management in China's commercial banks;2. Basic strategy of implementing total cost management in China's commercial banks;3. Specific countermeasures of implementing total cost management in China's commercial banks.This paper widely applies theories in commercial bank management, management accounting and corporate finance management. By using empirical analysis, comparative analysis, theoretical analysis and historical analysis methods, this paper investigates the present cost management situations and suggests a total cost management mechanism.According to the empirical analysis, which proves that the traditional method of cost management has its own weaknesses and inadequacies, a further confirmation has been made that China's commercial banks need to implement a total cost management. Moreover, the empirical analysis indicates the countermeasures of effectively implementing total cost management in branches of China's commercial banks.