Bank Of China, Gansu Branch Of Economic Capital Management

In past more than ten years, the most notable change in banking management is that banks have been placing more emphasis on economic capital management which is based on risk computation and risk optimization, other than traditional asset and liability management. Among the domestic commercial banks, Bank of China introduce the concept of economic capital, has been implementing economic capital budget management in the past few years。It has played a positive role in controlling the total amount of risky assets and capital constraints However,when compared with the advanced international banks, Bank of China economic capital management still exist many flaws, In order to comprehensively understand the present situation and analyze the existing problems and deficiencies of the Bank of China,Gansu Branch economic capital management the paper begins witll the economic capital management basic theory,comprehensively analyzes the present situation of Bank of China,Gansu Branch's economic capital management. and compared with the advanced internmional banks'successful experiences, then finds out the disparity and the idea of solving the problems. The paper focuses on cultivating advanced risk management culture,improving basic data quality,making the economic capital measurement methods better, building economic capital management framework, steadily advancing the economic capital management and establishing a performance appraisal system whose key points are model RAROC and model EVA. The paper tries to offer more valuable reference and help for the Bank of China,Gansu Branch's economic capital management.