Font Size: a A A

China's Commercial Banks, Financial Management System Innovation

Posted on:2006-08-13Degree:DoctorType:Dissertation
Country:ChinaCandidate:R L GuoFull Text:PDF
GTID:1116360152488292Subject:Finance
Abstract/Summary:PDF Full Text Request
With China's entry into the WTO and continuous economic development, its financial industry, as the support of economy, has sped up its pace of internationalization. First of all, loans are classified into five categories and provisions are reserved for each of them. Second, the China Banking Regulatory Commission (CBRC) requires credit rating and classification of risks. Third, the Fiscal Department has made new reforms by adopting international accounting standards in each element of financial statement except for investment incomes. Fourth, the country's regulatory bodies have also tightened policies on banks' activities. For example, the new Basel Capital Accord about the capital adequacy ratio has been set up as a necessary condition for new banks to be formed.The financial industry has been challenged and thus reforms have transformed the industry. As the core of commercial banks' operating activities, financial management has been involved in the reform as well. I have learned a great deal of financial management from my work and here I summarize a number of my personal opinions. I believe that as the core of commercial banks' operating activities financial management must be present in the whole process of management activities of commercial banks, permeating into each stage and product of commercial banks. Financial management not only quantifies and prices assets and liabilities but also concerns about the impact of risk management on profitability of banks because profits excluding risks are the real goals banks try to achieve. Therefore, I have brought up the concept of risk management, discussed methods of assets, liabilities, and capital management in banks' operating activities. Additionally, I have discussed total cost management and budgeting, risk control system and risk adjusted return, etc. This dissertation includes seven chapters and main points of each chapter are below.Chapter 1 Financial Management Is the Core of Commercial Banks' Operating ActivitiesStarting with the evolution of commercial banks, this chapter states that financial management has always accompanied the development of banks regardless of banks were in the early stage or at present. Financial management permeates into the entire process operating activities of commercial banks and continuously improves with banks' development. With the pursuit for profits, risk management has become a very important element of financial management and risk prevention and control has become an effective tool of achieving banks' objectives.Chapter 2 Current Position and Problems of Financial Management of Commercial Banks in ChinaThis chapter depicts three evolution stages of Chinese commercial banks, describes roles financial management has played in each of those stages, states the current position of financial management, discloses problems in financial management at present, analyzes challenges facing commercial banks, and provides experiences foreign banks have gained over many years of practices.Chapter 3 Evaluation and Risk Control of Asset and LiabilityBased on the source of banks' liabilities and risks of working asset, the financial management should be started with the demand for liabilities and asset, as suggested in chapter 3. The measurement and planning of demand, the pricing of their cost, the analysis and evaluation of their risk are all to be involved in financial management.Chapter 4 Total Cost Management and Cost RestraintFrom the connotation of total cost, this chapter firstly lays down the importance of cost management in modern commercial banks' operation, points out some problems and improving measures in current cost management, and brings up some proposals on renewing the perspectives of cost & expense, and promoting Total Cost Management. In the sense of economics, cost is the value prepaid during theprocedure of production and operation. From the angle of finance, cost is expense. Allow for banks as the special enterprise of dealing with money, their cost should cover the expense during the procedure of operation and...
Keywords/Search Tags:Financial Management, Total Cost Management, Capital Risk Management, Performance Management, Assets and Liabilities, New Basel Capital Accord
PDF Full Text Request
Related items