The Research On The Allocation Of The Economic Capital Of Commercial Bank

Capital is the foundation upon which commercial banks survive and develop. From the study of western banks history, banking supervision, and the trend of banks development, we can recognize the importance of the bank capital.To strengthen the bank capital management, the commercial banks introduce the concept of economic capital. Economic capital has fully considered the risk and income, is the direct embodiment of risk and shareholders'value. Under the restricted capitals, the research on the allocation of economic capital to strengthen the capacity of risk management and achieve the maximization of shareholder'value, becomes more important.This paper analyzes economic capital the allocation of economic capital of commercial bank from the theoretical analysis and the empirical research. In the theoretical analysis, the paper divides the economic capital allocation of commercial bank into static allocation and dynamic allocation. The static allocation pays attention to establish an effective risk measurement system, no considering the performance. The dynamic allocation integrates risk and performance, and establishes a performance testing system based on RAROC&EVA in the bank. 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 forwards some solutions and suggestions to optimize the allocating performance.