Economic Capital Management, And The Value Of China's Commercial Banks

It has been proved that the bank can obtain great potential development by its added value whose key factors are increase, reward and insurance. But for a long time the three factors are ignored. Generally a traditional way to analyze the value of the bank and make a plan is just concerned about increase and reward prospect, and it seldom refer to the insurance which the bank will confront in the near future. So it's necessary for us to find a new way to connect them (increase, reward and insurance) in order to form a new management system about the value of bank whose key points are model RAROC and model EVA. Since 1990s, main international banks have begun to build a management system about the value of bank based on economic management, and they've already got some near mature experience. At present, with the further reform of Commercial Banks in China, the management about the value of bank has taken a very important part, and our National Commercial Banks pay more attention to build management system about the value of bank which not only suits cotemporary financial development level and direction, but also is practical. According to economic capital theory and means, this article analyzes the main problem existing in management of our Commercial Banks from its point of view on capital and value management. It points out the way to draw in economic capital management and we must build a management system about the value of bank based on economic capital management, which is the only way to increase the value of commercial banks. According to the present conditions of our National Commercial Banks, it also tells us how to run the capital. At the moment, we usually take the measure and assignment way of economic capital based on "coefficient way"to build a management system about the value of bank whose key...