Study Of Commercial Banks Economic Capital System

Company's basic business is managing the risk. The companies those are good at managing the risk can be able to obtain success generally, but the ones are not good at managing the risk will be defeated generally. How to distinguish, evaluate and manage the risk is the key point of company's policy decision, especially for the Commercial Bank, because the essence of Commercial Bank is a risk machine. Today, the management environment that the Commercial Bank of our country faces with is more and more complex, and the type is more and more many. How to mange the risk comprehensively to enhance the international competitive power?The idea of enterprise-wide risk management tells us, the enterprise-wide risk management is the unity of the risk management strategy, the process and the organization structure. The bank needs to survey the enterprise-wide risk, but only has the management system which can withstand comprehensive risk, after then there is the possibility truly to engage this survey. And this management system is the economical capital system——the core of the enterprise-wide risk management. The economical capital is the capital which produces after the internal estimate of the Commercial Bank's administrative level, disposes for the property or some business to slow down the risk impact. The bank needs the economical capital to buffer the risk brought by the unpredictable loss. The accurate fixed price and the sufficient reserve fund may provide the enough income for the bank to endure the foreseeable loss. But, the bank's risk produces from the unpredictable loss in essence. Quantifying the unpredictable loss not only enables the bank to avoid bankruptcy which causes by a series of disasters, moreover also can judge whether uses the most effective method to dispose capital, as...