The Study On The Economic Capital Allocation Of Commercial Banks

Applying contemporary economic methodologies, this dissertation analyzes economic capital allocation of our country's commercial bank from the perspectives of empirical research and theoretical analysis to explore the optimized way of the economic capital allocation of our country's commercial bank. In the term of theory, the paper divides the economic capital allocation of commercial bank into static allocation and dynamic allocation, and then applies the Entrust-Agency theory to bank economic capital allocation to analyze the optimized allocation under the Entrust-Agency risks. On the basis of theoretical analyses, the author focuses on the present situation of Chinese commercial bank economic capital allocation and explores the problems and obstacles existing in it, while putting forward some solutions and suggestions to optimize the allocating performance. Because of Chinese commercial bank's lagged management, weak operation base and technical methods, as well as unsound external and inner institution prevent from economic capital allocation's implementation, the fundamental way of improving economic capital allocation of our country's commercial bank is to increase capital restriction, further bank reform, optimize external and inner institution system, and in the another way, to pay attention to establish an effective risk measurement system and a performance testing system based on RAROC & EVA in the bank, construct and consummate economic capital allocation system to make strongly objective base for bringing economic capital allocation into effect. Meanwhile, China's commercial bank should actually change bank management strategy and promote creation and implementation of full risk management strategy.