The Study On Economic Capital Management In China Construction Bank Gansu Branch

Commercial bank is the special enterprise business money, has the very high risk, the lifeline of commercial banks in risk management, therefore, to seek sustainable development for a long time, the bank must grasp the risk level. That asset risk theory, asset risks exist in the business process, there is difference. These risks except by extracting a number of ready to cover, but also must pass a certain amount of capital to guard against possible loss. Therefore, in case of Bank Capital Limited, bank management must give full consideration to the factors of capital restriction, rational, reasonable control of bank resources, comprehensive planning and business development speed and scale of the business, to obtain greater return on capital to smaller capital investment. Thus, capital is the prerequisite and foundation of modern commercial banks, it reflects the scale of commercial bank expansion and the ability to resist the risk. After a historical proof and experience accumulated over the years, and the economic and financial ideas constantly updated, not capital retained more risk prevention ability of banks more favorable, one of the enterprise objective of the bank is to maximize profits, while much of the capital was occupied cannot enter the value to increase profit link, a waste of capital the capital, did not reach the maximum utilization, however, too little capital will reduce the ability to resist risks, therefore, the game among the economic capital occupied, the optimal allocation of capital and the cost of capital and return has become the modern financial industry, especially the research of modern commercial banks. Under the risk management and regulatory requirements of regulatory authorities, management system of commercial banks into the capital management concepts, and gradually develop and mature, achieved good results, attention, importance and applied research and bank managers attract more scholars and researchers. Construction Bank in the domestic banking industry took the lead in introducing the concept of economic capital, after10years of continuous exploration, exploration and practice, the economic capital management, and gradually become the core of risk management and business management, expanding the scope of the utility relates, also gradually. At the same time, because of our risk management starts late, the concept of economic capital management foundation is weak, excessive adaptation limitation and economic capital management, coupled with the lack of experience of the objective environment for implementation of the need for a longer period of time, the Construction Bank in the application of economic capital also has some problems and shortcomings, to play the effect to some extent. The. This paper aims to analyze the Construction Bank economic capital management present situation, application, summarizes the existing problems and the reasons, and puts forward some ideas and Countermeasures to solve the problem. Firstly, this paper introduces the economic capital management background and domestic bank economic capital management application present situation, introduces the research object of economic capital significance. Secondly, from the aspects of concept, the economic capital measurement and theoretical basis, grasp and understanding of the concept of economic capital, economic capital management in China Construction Bank branch in Gansu province and the status of the economic capital management application effect, summarizing it in the process of development effectiveness, and to analyze its capital business economic footprint, find out the existing the problem, and make a brief analysis of the causes of. Thirdly, through the analysis of economic capital management in China Construction Bank of Gansu province and the existing problems, put forward the countermeasures to improve and perfect the economic capital management system. Finally, on the basis of summarizing above, draws the conclusion, put forward how to further enhance the countermeasure of economic capital management in China Construction bank.On the one hand, the Construction Bank of China is the pioneer in domestic commercial banks in the economic capital application, this paper summarizes their advanced experience, with reference to the domestic counterparts; on the other hand, in the economic capital management of Gansu branch of China Construction Bank’s problems are universal in China, to study and solve these problems will provide a good way as the economic capital management system in Construction Bank branches increase, also have certain reference significance to other domestic commercial banks.