| Since the Third Plenary Session of the 18th Central Committee of the Communist Party of China, the process of deepening economic system reform was continuously pushed and financial reform moved closer and closer to interest rate liberalization. The golden age of China’s banking industry which obtained high profits through the differences in deposit rate and lending rate has passed. Faced with increasingly fierce competition around the world and the rising pressure of China’s economy, banks have committed to the development and expansion of intermediary business. Net profits of bank grew flatten in recent years, while intermediate business income increased. Compared with traditional deposit and loan business, intermediary business has become a new profit growth to commercial banks. So that it has caused extensive concern to the cost of intermediary business in bank. The cost of intermediary business in bank includes two parts, which are direct costs and indirect costs. And the allocation of indirect costs in bank has always been a big problem. To solve the problem, and concern to the requirement of CRBC that our banks must change from department bank to processing bank, a scheme of applying activity-based costing to allocate indirect costs for intermediary business in bank which based on activities and process in this paper.Based on the analysis of costing status for intermediary business in Huarong Xiangjiang Bank, I found some problems. Such as the bank ignore the importance of indirect costs. And the current cost information lack of a clear product cost information. There is a lack of coordination among departments, while costing development lags behind the development of business. So the application of activity-based costing for intermediary business to allocate indirect costs were proposed in this paper. According to the general steps of activity-based costing in enterprises and the fact of bank, a specific program was designed in the paper. At first, dividing resources into cost pools and confirming resources in each pool. Then, build activity centers and define activities. Finally, choose cost drivers for resources and activities to allocate indirect costs for intermediary business scientifically. The text lists the obstacles that may be encountered in the implementation process, and puts forward safeguards. It also predicts the implementation effect at last.The application of activity-based costing can improve the accuracy of intermediary business in bank, it contributes to scientific cost management and provides effective support for market positioning in the future. |
