Research On The Efficiency Of Economic Capital Allocation Of China 's Commercial Banks Based On RAROC

In the context of global economic integration, On the one hand, the international financial environment has changed, financial mergers and acquisitions continue to occur, more and more countries will continue to expand its asset size; On the other hand, the generation of financial disintermediation. In order to open up new markets and are willing to bear the cost of higher risk, but may result in loss provisions did not provide the appropriate level of bank capital. A huge knock-on effect and tend to occur in the case of disruptive capital chain rupture occurs.In the continuous development of economic globalization today, the importance of the financial sector in the economy has been more prominent, it is healthy and stable development of a direct impact on the health of a country’s economy. There will be business as long as there is a risk of economic activity, while the commercial banks as a core part of China’s financial industry, the special nature of business object determines the risk they face is different from other general business.1970s, shocked the world’s banking crisis, which gave birth to the famous banking convention "Basel Ⅰ", It established a unified global bank risk management standards. In the face of new financial institutions and regulatory issues arising in the course of "The New Basel Capital Accord"(hereinafter referred to as the "New Capital Accord"), "Basel Ⅲ" have also introduced the new Basel Capital Accord represents the future direction of the banking risk management and capital regulation.For our capital management should be given adequate attention in the bank when the capital increase, models and methods for risk management must consider changing regulatory thinking, Take more effective measures to ensure the harmonization of profitability, liquidity and risk of all three. In fact, foreign banks in advanced economic capital 20 years ago as a management tool. Because of the economic risks and benefits of capital can be combined with the capital of the three considered to ensure that more attention while operating income risk in order to evade the pursuit to expand the scale of individual asse ts in order to achieve effective risk warning, minimize and disperse risk. Due to China’s economic capital allocation is not so mature, so the economic capital allocation study has profound theoretical and practical significance stronger.Based on the domestic and international economic capital allocation combing theory, based on practical experience in foreign configuration, combined with the actual situation of C hina’s four major commercial banks of C hina’s banking capital allocation empirical research, p uts forward suggestions configuration.This paper is divided into six chapters.The first chapter is introduction. Briefly in this paper, the research background and significance, and related literature review, this paper expounds the innovations and deficiencies of the article. The second chapter summary of commercial bank economic capital allocation. First introduces the three ways of economic capital allocation, as the economic capital measurement is the basis of economic capital allocation, so this chapter according to the type of risk of economic capital measurement was introduced in detail, then to commercial bank economic capital allocation and its RAROC as the core of performance appraisal system are introduced, set the stage for the fourth chapter the empirical part. The third chapter our country commercial bank economic capital allocation situation and the main problems. This chapter is divided into two large, the first part introduces the present situation of our country commercial bank economic capital allocation, due to the empirical part respectively from two state-owned commercial Banks and joint-stock commercial Banks, so this chapter respectively to the current situation of the state-owned, joint-stock commercial Banks in C hina are expounded. The second part analyzes the main problems of our country commercial bank economic capital allocation. The fourth chapter is based on RAROC fluctuations in the empirical analysis our country commercial bank economic capital allocation efficiency. This chapter is the focus of this article, using the RAROC model to analyze our country commercial bank economic capital allocation efficiency. On the basis of the third chapter our country commercial bank economic capital allocation, the problems of using the econometric model is suitable for our country commercial bank itself to carry on the empirical analysis. Through empirical analysis it is concluded that to improve the efficiency of configuration, the result of the commercial Banks in C hina need to expand the scale of the assets of the business, capital more configuration among the assets of the business. The fifth chapter for improving the capability of our country commercial bank economic capital allocation management countermeasures and Suggestions. Through the third chapter main problems of our country commercial bank economic capital allocation in the fourth chapter and the result of empirical analysis, put forward the corresponding countermeasures and Suggestions.