A Research On Total Cost Management For Commercial Bank

To set up the modern commercial banking operation mechanism is the persistentdirection for its reform. With an increasing opening-up of the financial market, thecompetition between the state-owned banks and its foreign counterparts get more andmore fierce. The decisive factor for the success is not only the strength but for thebetter part,it depends whether there is a healthy operation mechanism. Recently, thefrequent appearance of financial crisis around the world demonstrates that it isessential for domestic commercial banks’ survival to hold an all-round healthymanagement mechanism.As the brand-new management way with the appliance of modernized theory andtechnology, total cost control is the essential part of the operation mechanism for themodern commercial banks whose target, content, solution, consistent with the internalmanagement requirements of the modernized commercial banks, are significant forthe state-owned commercial banks to strengthen their competition force. Despite ourcommercial banks have carried out highly effective exploration on the economicsystem reform and innovation of operation management model etc, it still basicallycontinue to use the traditional cost management model in terms of cost managementsystem and the model.With the development of our market economy and thedeepening of the financial system reform, the traditional cost management model getsmore and more hard to meet the requirements of the development and reform in thepractice. It must implement the total cost control no matter for adjusting the coststructure, optimizing the resource allocation or for setting up and perfecting theoperation mechanism and management model for modern commercial banks so as toincrease the competition.This paper uses the theoretical knowledge of Enterprise Management, EnterpriseFinancial Management and Management Accounting, analyzing at length theinternal&external environments that ZD commercial bank is in and it elaborates thecost composition, expounding on the existing problems of the cost control andanalyses the necessity and feasibility of constructing the total cost control system andit designs the specific solution and attentions for implementing the total cost controlsystem. Finally, this paper studies the results on the cost control and the points that need to improve on for ZD bank and advise to push wider the total cost control withinour commercial banks.