Research On The Budget Management System Of China’s Commercial Banks

With the market-oriented interest rate reform and the development of Internet banking, commercial banks face greater opportunities and challenges, both small commercial banks and large state-owned commercial banks are constantly adjusting their development strategies, looking for the best management, in response to the increasingly severe challenge. Budget management has been introduced into the management of commercial banks. But from the analysis on the recent budget management in China’s commercial banks, there are still some problems:lack of comprehensive, systematic and in-depth research, especially in the budget management environment, the basic system for budget management, the index system for budget management, budget-making and breakdown, monitoring and evaluation of the implementation of the budget, so there is still room for improvement.The current budget management of China’s commercial banks are generally:the head office develop the overall targets, and to quantify the targets into small assessment indicators, branches breakdown the overall targets and reassign to the sub-branches. This type of management tends to stress the realization of targets, but neglects the management during the realization of targets, thus leads to the weak control over the business process and is harmful to the risk management of commercial banks. Due to the over-emphasis on figures, those branches and sub-branches cannot understand the overall targets completely, and increase the difficulty in controlling bank risks.This thesis discuss the basic system, index system, budget-making and breakdown, monitoring and evaluation of budget management in commercial banks. Based on the existing problems in budget management in current commercial banks, this thesis analyzes the overall process for building, implementing, evaluating and analyzing budget management system. By analyzing the budget management system in a large state-owned commercial bank, this thesis discusses the problems existing in current budget management system in commercial banks and offers feasible proposals, through which the deficiencies of current budget management can be compensated and the advancement and advantages of budget management can be exemplified. To improve the controlling and stimulating effects of budget, thus to better exert the enthusiasm of bank staff, so as to promote the stable and scientific development of banks.This thesis is divided into six chapters. The first chapter is the introduction, this chapter explains the necessity of studying budget management in commercial banks, budget management research review and the ideas, methods and innovation; chapter 2 serves as the theoretical basis, this part gives a brief introduction to the connotation, function and characteristics of budget management in commercial banks. Chapter 3 is about the budget management system in commercial banks, including the basic supporting system, index system, budget-making and breakdown, monitoring and evaluation on budget management system in commercial banks. Chapter 4 is the basic introduction to Bank A. this part introduces the basic situation, business strategy and budget management of bank A. Chapter 5 is an introduction to the budget management system, index system, budget-making and breakdown, monitoring and evaluation on the budget management system in bank A. Chapter 6 is some relevant suggestion. This part offers some strategic advice aims to handle the current existing deficiencies in budget management of commercial banks.