The Economic Capital Allocation Research Of Chinese Commercial Banks Based On RAROC

Capital is to banks what nature is to wood and source is to water. Good capital management is a key element to sustainable development of commercial banks. The financial and economic in the whole world advance by leaps and bounds, but there have been also a variety of financial crisis. The book capital of commercial banks and regulatory capital for the purpose of compliance have been unable to meet the needs of the modern capital management, so economic capital came into being. In Post-crisis era, it is more actively that many foreign banks explore a series projects to form system that economic capital is as the core, applicable to their own actual situation, including risk measurement、capital allocation and performance assessment, and expanding application in the management. China, as a rising star, due to the lack of data, technology and other aspects, whose economic capital management is not perfect, would find and solve problems in all aspects of the economic capital management with a more positive attitude, which is of great signi(?)paper makes economic capital allocation as the core, which focus on present economic capital configuration management status on commercial banks at different levels of our county, and explores、analysis and compares efficiency of economic capital allocation with the main line of risk-adjusted return (RAROC). It also presents the existing problems in the economic capital allocation from the point of company business、personal business and funds business. In this paper,five chapters can be divided into three parts. The first part is the background and theory, including the first two chapters, in which it mainly describes the research background and significance, and elaborates the domestic and international research achievement as well as related theories and methods of economic capital management system, such as the basic theory of the economic capital, some measurement on the international economic capital allocation, two core assessment indicators of economic capital. The second part is current situation and demonstration analysis, including chapter there and four. On one hand, it conducts in-depth analysis of the economic capital management and allocation of domestic commercial banks at three levels. On the other hand, businesses of12listed commercial banks in our country are divided into companies、individuals、funds and other businesses. Along the allocation route of the economic capital, Economic capital、the economic cost of capital、economic value added are successively estimated, which ultimately contribute to derive risk-adjusted return (RAROC)and calculate the standard deviation and compare fluctuations of different business. Finally, according to the calculated results, it not only analyzes the development of different business as a whole, but also discusses the economic capital allocation from the perspective of each bank. The third part is the countermeasures and suggestions, including Chapter five. There are two main aspects. First, it is to build a economic capital allocation system, including improving the level of economic capital measurement; strengthening economic capital professional personnel training; playing the role of performance appraisal on the economic capital allocation. Second, it is to improve the efficiency of economic capital allocation, which includes that small and micro enterprises should be boosted by economic capital; personal business development potential should be mined; capital business should be prudently carried out.