Expense Budget Management, Based On The Strategic Direction Of Commercial Banks

In recent years, commercial banks'internal and external business environment is becoming increasingly complex, competition in the same industry is also very fierce day by day. The internal management efficiency plays a significant part with regard to enhance the competitiveness of commercial banks. Currently, most of the major commercial banks have introduced a comprehensive budget management as an important toll for the implementation of strategy and resource allocation, however, the expenses budget is inadequate in strategic relevance and refinement.Consequently, the establishment of commercial banks with a high degree of correlation of strategic budget system, and the introduction of zero-based budgeting, cost driver theory, economic value added and other advanced methods and concepts will have a great significance for the effective management. Firstly, from a strategic point of view, this article introduces the importance of commercial banks' comprehensive budget management and cost estimates, summarizes the existing problems and proposes the improvement ideas. Secondly, proceeds from strengthen the strategic relevance, value creative, internal transfer pricing and some other advanced budget ideas, proposes building an idea of strategy-oriented and creation-based system of commercial banks. Thirdly, introduces the NMZH case, based on its strategic analysis, raises an optimized budget scheme which is including the branch budget, business lines and sub-sector budget and other aspects'cost estimates. Finally, proposes an advanced budget system for the necessary safeguards.This article is combining a standardized research and case study on the study method.This article attempts the commercial banks'budget innovation from the following aspects:strengthening the relationship between organizational strategy and budget, recommending the value management indicators as the core indicators of the cost allocation. They reflect the value of the maximum requirements; through case analysis, explores the cost of configuration ideas which combined the differences of the highly correspond organization strategy and standardization. During the preparation of the budget, the cost drivers theory has been introduced in, and a more complete system of commercial banks based on operating costs and the preparation of cost drivers, with strong practical significance.