The Research Of Total Cost Management In Chinese Commercial Banks

In the 21st century, world economy is accelerated by globalization, marketalization and knowledge. The new economy, considering knowledge as its fundamental force and core resource, changes the mode of economy development dramatically as well as the operation conception, strategy and pattern in modern commercial banks.The new economy stimulates competition in banking industry, narrows its profit margin, forces the commercial banks to reexamine their traditional cost management and try to find out an advanced one that enables the commercial banks to foster their core competitiveness and develop continuously and strategically. Total cost management is the key to it.The implementation of total cost management in western banking proved to be effective in the aspects of offering detailed and accurate data, optimizing business process and supporting market positioning, but our commercial banks have just put it on the agenda.Based on the theory of total cost management and compared with the advanced western commercial banks, this thesis starts with analyzing the current condition of cost management in Chinese commercial banks, and further points out ideas and framework of their cost management reform and innovation: to constitute the total cost management mode, figure out product cost and customer profitability with the help of activity analysis and cost driver, and help administrator get more detailed and accurate cost information.