Developing Activity-Based Costing In Bank Management

Facing market and integrating into market is only way for china bank reform by the crossing of centuries. In the transformation process, how to transform from the loosen-adding to the intensives adding to actually improve the operation benefit and anti-risk will become a must problem for china bank. With the special operation bank mechanism, china banks always are characterized as credit-index focusing and quantity-adding focusing, ignoring internal management and quality-improvement. In the consequence, ignoring a appropriate ratio of cost-benefit, ignoring cost controlling in the operation, lacking of cost data and necessary cost manage skills always existed in the whole bank industry. It is really incredible that an enterprise that has no idea of its cost composition and related information can working-out a reasonable, competent product price stratagem. Under this background, it becomes more necessary and exigent that improving cost? And cost management level of business banks.ABC (Activity Based Costing) comes out as a novel cost-management regulation. Its success greatly due to have overcame computing defects of the traditional overhead expenses and have reformed product cost-computing method which greatly be convenient for cost-management. Through this method derived from the manufacturing, it also brings its immense advantages to the bank management. Through introducing ABC companied with ABC successful case in foreign developed bank, this article will narrate how to carry ABC into execution in china banks management, in furthermore, the article will discuss the probability of introducing ABC into china and the implementing problems based on the current status of china banks. The article divided into five parts:The first part: because the traditional cost management regulation does not adapt to the new economic and technical environment, we will definitely focus on one new cost? -Activity Based Costing. In the part, we will introduce the engendering, basic principle and computing method of ABC.The second part: introducing the ABC implement effecting in bank management and the perform scheme establishment.The third part: Introducing the case of Britain cooperation bank applying ABC.The forth part: combined with china bank current status, this part will analyze the probability of introducing ABC into china and existing problems, and bring forward basic way that putting ABC into effective in china banks.