The Application Analysis Of Economic Capital Of Commercial Bank In China

Along with Commercial bank’s competition aggravating, China’s Commercial bank, if wants to have the management superiority, must discover and cultivate the core competitiveness. but the value management is the effective measure for the Commercial bank to strengthen the core competitiveness and to determine the long-term competitive advantages. The value management overcomes the original profit management flaw, creates the economic efficiency higher than the capital opportunity cost, The economical capital is an important component of the Commercial bank value management. The implementation of economical capital in management, may cause the Commercial bank to realize the huge transformation in the management idea and to enormously increase the Commercial bank’s value.This paper aims to analyze the problems in the appliance of economic capital and try to give some solution.This paper firstly introduces the theory of economic capital, economic capital leads to related concepts, measurement method and the application principle; Secondly, discusses the economic capital of commercial banks in China, application status, and the problem which exists in our country Commercial bank economical capital implementation. Once more, carries on the thorough system’s analysis with J branch of Z bank as the case, to analyze its question and put forward the related proposal.This paper made a comprehensive introduction and analysis of the application of economic capital, with the theory and case combination method, it will be a practical guidance of improving the economic capital implementation of commercial bank in our country.