Research On The Application Of Economic Capital Management In Commercial Bank Risk Management

Along with our country financial market gradually opening to the outside world and rapid development of the banking risk exposing species complex, risk events emerge in endlessly, problems such as commercial Banks gradually aware of the necessity of risk management and the serious trend, the economic capital management should introduce to our country banking industry comprehensive management. Commercial Banks want to active quantitative risk prevention, through the economic capital management tool to identify and diagnose the type and degree of risk, the use of economic capital in this virtual capital to withstand various business risks of Banks, in order to realize the comprehensive risk monitoring and prevention of bank.Based on the clear the relative concepts of economic capital and relationship capital and risk, based on the comparison of bank of America, deutsche bank and other advanced foreign big commercial bank economic capital management method, discussed the our country commercial bank to introduce the necessity and important role in the economic capital management system, under the guidance of the core aim of maximizing shareholder value, set up a scientific system of economic capital management, a comprehensive cover bank credit risk, operational risk, market risk, etc., enhance the level of commercial bank risk management, increasing the risk coping capacity. Based on M commercial Banks N region branch as an example, the commercial Banks credit business of economic capital measurement are analyzed in detail and risk-adjusted returns, according to the measurement of economic capital measurement and risk adjusted returns as a result, the guide M commercial bank economic capital management tool is used to determine the control risk appetite, he resource configuration optimization, evaluation of performance appraisal method, formulate reasonable loan price, set up risk control limitation, finally realizes the commercial bank business development and risk management of effective coordinated development. Full text combining M commercial Banks N regional branches of concrete implementing economic capital management practices, points out that represented by M bank of our country commercial bank economic capital measurement tools in risk management common problems, and puts forward the corresponding countermeasures and Suggestions.The purpose of this article is through the analysis of the application of economic capital measurement in commercial Banks, and emphasizes the functions of risk identification and measurement of economic capital, really give play to its in the operation and development to make more efficient use of capital effectively the functions of a bank’s risk strategy and business development, shareholder goals consistent, comprehensive set up capital to cover risk of consciousness, and realize the sustainable development of the bank.