The Practice Of Economic Capital In The Domestic Commercial Banks

The adoption of economic capital management, the capital management of bank has moved a great step from regulatory capital to economic capital.Economic capital is not only achieved a high degree of quantization based on the basis of the risk of capital loss and the mutual commitment to reunification, and continue to promote a risk management and capital management of the overall unity, the establishment of the capital constraints in the banking risk management in the central position.Advanced international banks since the end of the 20th century began to research and apply economic capital, by calculating the risk-adjusted earnings to enhance the overall level of risk-reward. At present, large international banks have set up a measurement and allocation of economic capital for the risk management system platform. Domestic commercial banks have begun to explore and practice of economic capital management. Bank management is to implement the economic capital of the bank as early as 2001 on the introduction of the concept of economic capital, which was formally established in 2004 to rate of return on economic capital and economic value added as the core economic capital management system.Construction-depth analysis of this paper, economic capital and economic capital management practices in budget management, performance evaluation, risk pricing, risk limits, risk areas such as the use of the report to explore the China Construction Bank economic capital measurement and matching mechanism of a number of shortcomings and limitations,and put forward proposals to improve and perfect.