Applied Research Of Total Cost Management Of Suzhou Branch Of Agricultural Bank Of China

With the rise of foreign banks and private banks, the enhancement of interest marketization, the aggravation of financial disintermediation and the rapid development of internet finance bring new impacts and challenges to profit models of commercial banks. Due to the convergence of our commercial banking products and general advancement of services, the competition of commercial mainly banks lies in the competition of cost advantages. For both the inherent needs of development and external requirements from shareholders, it is necessary for our commercial banks to enhance the low-cost competitive advantage with total cost management featured by full-member, entire-process, and overall implementation, as the inevitable choice for the improvement of the profitability of China’s commercial banks and the enhancement of the core competitiveness.This paper introduces the connotation, basic models, the core and the basic methods of total cost management, indicates cost management features of commercial banks, total cost management framework and content of commercial banks, and then reveals the necessity of total cost management application in domestic commercial banks. Taking the total cost management in Suzhou Branch of Agricultural Bank where the author works as an example, the author proposes appropriate countermeasures and suggestions after analyzing the results achieved and existing problems. At the same time, other banks are expected to learn from the total cost management in Suzhou Branch of Agricultural Bank.