Research on Economic Capital Management of Boshan Branch of Agricultural Bank of China
|Keywords||economic capital management risk management|
Research on Economic Capital Management of Boshan Branch of Agricultural Bank of ChinaWith China’s accession to WTO, foreign banks and joint-stock banks rapid expansion inland, agricultural banks face increasing competitive pressure, foreign banks with a sound corporate governance structure and flexible operational mechanism, and have the talent advantage and technological innovation advantage, they quickly occupied part of the high-end market. Boshan Branch of Agricultural Bank of China has made rapid development after years of operation, but there are many outstanding issues to be resolved, if not properly and quickly addressed, they will certainly affect the ABC of Zibo City’s rapid development.The purpose of this study is attempt to solve irrational business structure and lack of competitiveness issues by research on economic capital management of Boshan Branch of ABC, and makes a clear direction of development, achieve Boshan Branch quality, efficiency, speed and scale sustainable development.The contents of this study is economic capital management of Boshan ABC, first introduces the background, purpose and meaning, as well as research trends, a clear main structure of this article and research methods. The possible innovations of this study are how to introduce this advanced management methods--economic capital management into the present level of management, to improve management of agricultural bank and ability of risk prevention, this study has conducted some exploration.The second chapter researches on the origin of economic capital, meaning and risk measurement, uses inductive method to analyze the features of economic capital management, points out that the main objective of economic capital management is to control the growth of risk, to improve the bank’s risk resilience and the economic returns on capital by reducing the economic capital coefficient.The third and fourth Chapters analyze the operational status of Boshan branch of ABC and the problems that exist in the economic capital management.The fifth Chapter puts forward fourpoint proposal on the present economic capital management for Boshan Branch of ABC, proposes the he specific proposals on problems of the economic capital measurement in implementation for Boshan Branch of ABC in the fourth chapter,and puts forward operability embodiment.This paper uses comparative analysis to analyze the economic capital management of Boshan Branch of ABC; uses comparative analysis to research the economic capital measurement.This study explores on how to implement the economic capital management of Boshan Branch of ABC. Combined with the actual situation of Boshan Branch of ABC, the main risk of the Bank are credit risk and operational risk, in the process of implementing in Boshan Branch of ABC, bases on Agricultural Bank of China branch Boshan to ABC Boshan branch assets for project-based branch assets of ABC Boshan actual risk faced by business classification, according to the actual situation in the appropriate branch of the Agricultural Bank Boshan characteristic measurement methods.Based on the research about operating status of Boshan Branch of ABC, this study analysis problems and difficulties that exist in the economic capital management of commercial banks, clears the strategic transformation direction of commercial banks, and proposes the specific measures of the strategic transformation, provides reference for the strategic transformation of China’s commercial banks.This innovation of this study is to make a more detailed exposition for the commercial bank’s capital management theory, to summary the advantages of the foreign commercial bank’s capital management, to point out the deficiencies of the capital management of China’s commercial bank, according to practice of China’s commercial banks and advanced experience of foreign commercial bank management, puts forward the recommendations to improve the level of China’s commercial bank’s capital management.This deficiency is that I have little talent and less learning, limited level, inadequate research and analysis capability, only try my best to discuss capital management of commercial banks.