The State-owned Commercial Banks To Implement A Comprehensive Cost Management

This present paper analyzes and studies why and how to implement TCM(total cost management ) in state-owned commercial banks under the condition of marketization of interest rate , viciousness of interbank competition, speedup of transformation of state-owned commercial banks into joint-stock entities .1 .The concept of TCMTCM, established in year of 2000, integrate contemporary management accounting with contemporary commercial bank's operation management . TCM priorities the Liability accounting ,and can adjust the cost or choice opportunity cost of every level, department ,station in banks operation management .It promote the realization of the "three transformations ".The "three transformations" are as follows : transform the management of sole department to common management of the whole bank , transform the cost management in narrow sense to one in broad sense , transform management ex-post to one of total process management.2.The practice of cost management in overseas commercial banksCost management of overseas commercial banks keep ahead of our state-owned commercial banks. The priorities of cost management of overseas commercial banks are as follows :clear idea about cost management ,broad content in cost management ,perfect liability accounting system and budget system ,fine cost management , utilizing computer widely in cost management etc . It help greatly to promote the competence of overseas commercial banks. The practice of cost management in overseas commercial banks are about the same with TCM .We should study it.3.The background and function of implementation of TCMCost management is one of weakness tache in state-owned commercial banks' operation management, which impact strongly the step of rebuilding state-owned commercial banks and promoting structure of corporate governance. It is embodiment of actuality of cost management in state-owned commercial banks which are narrow , roughness, rigidity, separate, singleness, ex-post and so on .Now some new problems ,such as marketization of interest rate and self-pricing of financial production etc , challenge grimly our state-owned commercial banks in cost management. We should steadily implement TCM in state-owned commercial banks in order to improving cost management . competence , structure of corporategovernance ,etc .4.The way to TCMNow implementation of TCM in state-owned commercial banks will be faced with a lot of obstacles, such as management idea , organise structure accounting system ,management means ,etc .Therefore, in order to establish fitness mechanism of TCM ,we should establish the system of regulations about TCM ,rebuild the organize structure ,reform the accounting system ,set up the system of internal transfer price ,found the cost management information system , establish the incentive mechanism. It is time for implementing TCM.