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Application Of GD Bank Performance Management Based Of FTP Mode

Posted on:2015-06-10Degree:MasterType:Thesis
Country:ChinaCandidate:M LiFull Text:PDF
GTID:2309330431490214Subject:Business administration
Abstract/Summary:PDF Full Text Request
At present, the domestic commercial banks are pursuing expansion from the tradition al model of the importance of capital constraints, risk control, asset quality and operating efficiency connotation development paradigm shift. Most of the commercial banks in the past accounting book profits, cash flow and the size of deposits and loans and otherfina ncial indicators to evaluate the results of operations of the bank, but theseshortcomings a re not considered financial indicators invested capital costs, lack ofawareness of the cost of capitalMore and more commercial banks will shift to value creation assessment indicator s as the core concept of economic profit, which means that the cost of capital after dedu ction ofcapital gains. Only there is a surplus in the bank to cover the net cost of capital, i n order to truly create value for our shareholders. With respect to the accounting gain, e conomic profit can encourage managers to get more revenue when the same lower capitali nvestment, improve efficiency in the use of funds. EVA assessment objectives andassessm ent mechanism can combine strategic objectives, will combine the shareholders,manageme nt and employees into the community of interests, to maximize the incentivesof the vari ous business units to create positive economic value added, and ultimatelymaximize shar eholder value.FTP, namely the internal funds transfer pricing, is an advanced bank asset-liability m anagement approach, with a fair evaluation of performance, centralized management ofmar ket risk, product pricing and scientific guidance to optimize resource allocationfunction, c an greatly improve the efficiency in the use of funds from performance evaluation of pro duct structure adjustment and optimization of starting banks. Specificfunding pool is super ior behavior management center, the following accounting unit-levelbehavior, the lower lin e of all liabilities are fully maintained higher line on all assets are fullyborrowers to higher line, in accordance with the schedule of the corresponding FTPinterest settlement price s, clearly every pen business costs and benefits.In this paper, a combination of qualitative and quantitative methods, focusing on est ablishing a bank’s internal funds transfer pricing mechanism of the core issues, analyze th e current situation through the performance evaluation method GD banks, combined withF TP theoretical systems for EVA appraisal based on FTP Mode mechanism has beenrefined and improved, the EVA indicator banks become real concern at all levels ofmanagers to guide operators pay more attention to corporate capital efficiency, maximizebusiness value, so that the market competitiveness of the banks are effectively enhanced...
Keywords/Search Tags:Commercial banks, FTP mode, Performance Management, Economic Profit
PDF Full Text Request
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