The Research On Activity-based Costing And Management Of Commercial Bank

As China’s financial markets, the gradual liberalization of the domestic commercial banks andforeign commercial banks increasingly fierce competition between, the bank value maximization asthe ultimate goal of management has become the consensus of various commercial banks. China’scommercial banks has long been gradually re-formed the internal management of the creditindicator light and heavy increase in the number of light quality growth, indifferent to the ills of theconcept of cost is also increasingly reflected the negative impact and constraints of domesticcommercial banks to improve competitiveness. This context, as a new cost management-Costing(Activity Based Costing) more and more attention to China’s commercial banking sector andrespected. At present, the activity-based costing in the West to obtain abroad and matureapplication, Citibank, First National Bank of Tennessee, USA and a number of internationalcommercial banks have introduced activity-based costing to obtain more accurate strategic,financial and business information in response to financial liberalization, electronic andinternational post-competition. Therefore, the implementation of activity-based costing will beChina’s commercial banks to improve competitiveness and to solve problems within the long-termaccumulation of the inevitable choice.In recent years, xxx Construction Bank, although in order to reduce operating costs, conducteda series of effective reform, and achieved certain results, but there is still poor asset quality,management quality is low, the irrational structure of income and other issues. In cost accounting,the bank is difficult to apply traditional cost allocation system for the sub-product line,sub-customer profitability analysis and market strategy to provide accurate and reliable costinformation and decision-making basis. xxx Construction Bank deposit and lending businessvolume in the case of rapid growth, the cost has not been effectively controlled. Which led to banklosses was extended, the cost of capital is too high cost management issues. This makes xxxConstruction Bank faces enormous pressure on profitability.Therefore, this paper has been costing theory based on the analysis of the xxx ConstructionBank, the status and cost management problems and to solve these problems, the bank proposed toaccount for the use of activity-based costing and management of specific ideas, and the use of acomparative analysis of several typical cases costing and traditional cost accounting methods superiority. Finally, the analysis of the commercial use of activity-based costing banks difficulty,focus and solution ideas.