China's Commercial Banks Economic Capital Management Issues Discussed

Construction of the economic capital management as the core management system of the modern commercial bank management is a fundamental content that the world bank industry probes and actively practices, and is also the trend of the Chinese bank industries' reform and development. As an advanced capital management method, because of scientifically integrating capital and risk, in some degree, has become the core of the management system in the international commercial banks. In this thesis, we begin with the Basel Accord, its application in China and the definition of the economic capital management, and introduce the meaning and main methods of the economic capital management. Based on the current situations of the Chinese commercial bank industry, we discuss the choice of the methods. The suggestion for the improvement of the Chinese commercial bank industries' economic capital management is also proposed.This thesis has three parts. The first part contains the introduction and the first chapter. The introduction introduces the background and the meaning of this thesis, and reviews the reference. The first chapter introduces the development of the Basel Accord, the content of the new Basel Accord and its application in China. The second part contains the second chapter, introduces the theory and practice of the economic capital management, including the content and the calculation of the economic capital management, and its application in the advanced commercial bank abroad. The third part contains the third, the fourth and the fifth chapter. The third chapter introduces the current situation of the application of the economic capital management in Chinese commercial banks, discusses the necessary of using economic capital management system, the choice of the methods and the existing problems. The fourth chapter illustrates the application economic capital management in Chinese commercial banks, and separately analyzes the relation of the asset quantity and quality and product pricing with the economic capital management. The fifth chapter gives some suggestions on the improvement of the economic capital management in Chinese commercial banks.