Strengthen China Commercial Banks By Total Cost Management

The cost of the bank contains all kinds of expenses during the daily operation. As a result, the cost management plays an important role in the whole management of the commercial bank. The traditional way of cost management is just reducing the budget, controlling the expenses that simply conducted by the finance department itself. However, the total cost management with the modern thoughts and advanced methods has become more and more popular among western countries.Although the quality of cost management has been improved a lot, it still has a long way to go because of some barriers to be crossed such as the old organization of the state owned bank.Therefore, five segments in this article are stated for analyzing:Part I: The basic theory of TCM (total cost management);Part II: The significances for conducting the TCMPart III: The analysis of the real situation of cost management for banks inChina and the causes behind it;Part IIII: The introduction of some successful experiences for TCM in themodern multinational commercial banks;Part V: The suggestions for banks of China----Total Cost ManagementTry to use much more and much better methods to manage all the cost duringthe course of operation especially making good use of the ERP system SAP forinstance.