A Study On Economic Capital Management Of Commercial Bank Of Our Country

Economic capital is capital demand produced by vocational risk with function of covering all kinds of risks produced by business affairs. Basel Capital Accord puts forward a claim of banking capital adequacy ratio, regulates computing method, and requirements for supervision and information leaking. Referenced by Basel Capital Accord, China Banking Regulatory Commission makes demand and supervision standard to capital adequacy ratio of commercial banks, and sets up regulatory system corresponding with Chinese banking. The new system puts forwards higher requirements to banks' capital management and risk management. Therefore, the urgent thing is to set up the corresponding economic capital calculating approach to measure capital amount.Because there is gap on management ability and technology capacity between commercial banks of China and those international banks, at present, commercial banks of China are not able to carry out the overall economic capital management. Therefore, the writer considers that economic capital management of commercial banks of China should be economic capital management system taking assets risk condition as measure evidence, taking planning management as means, taking controlling assets increase as goal.This paper discusses the theory and method of economic capitals management .The case studies of economic capitals management further analyze how economic capitals are used and function in the risk measurement and risk control. The paper also indicates the problems involved with economic capitals management facing China's commercial banks.