The Research of Application and Design of ABCM to JS Bank
|Keywords||Activity-Based Costing Commercial Bank Cost Management|
After joining WTO, the finance market of China opens up gradually, and foreign capital banks have been allowed to provide RMB service in China, meanwhile, commercial banks of China face increasingly drastic competition. JS Bank as one of the four major commercial banks, it have began to realize the important role of the internal cost management in improving the core competence, which doesn’t rely only on the marketing, service, etc.. And, the JS bank have the characters of various cost items, service products and high expense, these also request the JS bank to strengthen the cost management. In recent years, the JS bank have carried out great deal of reform in the cost management, it realized the big difference between the international advanced commercial bank and them, there are still many issues in its cost management:such as the cost check and allotment return is not precise enough, the cost management lack of value principle etc.. All these need JS bank to further improve its cost management method and enhance its cost management level. The activity-based costing management (ABCM) will be applied to the JS bank due to its adaptability to the mode of modern productions and services, and will be suitable for the current status of its cost.This paper takes efforts to find ways to apply the ABC’s methods and principles to the JS bank’s cost management systems. Firstly, this paper illustrates the necessity of implementing ABC in JS bank, combined with the current condition and character of the JS bank. Then this paper will analyze the implement policies and principal methods of ABC and possibility of implementing ABC in JS bank. And the author will put forward an idea that the implementing of ABC in the JS bank should base on the cost and benefit, efficiency and the effect, comprehensibility and adaptability, furthermore, the author illustrate one design of the procedure of the implementing of ABC.Based on the experience in the operational audit center office of the branch of JS bank in LN province with ABC, this thesis does some meaningful analysis. Firstly, this paper analyzes the audit activity and its procedure with ABC, enhancing the efficiency by improving the business handling procedure, analyzes the futures and characters of the part of the audit work, bringing forth and implementing the outsourcing for them. Secondly, this thesis analyzes and illustrates weather to do further outsourcing in some other part of the audit activity, then set forth the direction for the next step of the audit work. Then his paper gives an opinion on improving the distribute mode of the audit work cost for the second class branch by the calculating method of the audit cost, and analyzes the reasons that lead to the difference between the outcome before distributing the cost of the audit work and after.Implementing ABC is not the final goal but the first step to improve the management level in JS bank, the JS bank should also involve ABC into its procedures, thus ABC will play a more important role in the process reengineering and implementing of strategic target for the bank.