Economic Capital Research For Bank Of Communications

In recent years, economic capital as a kind of advanced capital management method has become the important comprehensive risk assessment standard to scientific evaluate commercial Banks against ability, but also a new management concept which is produced for the present banking to adapt to the international regulatory requirements. Economic capital means that in a given level, it is to absorb all the risks or buffer unexpected losses of capital. Through the effective management of the economic capital, first, it can be organic balance capital, risk, and income that makes the risk management and income assessment better understanding and in the service of the capital long-term value maximization. Second, it will target management and management performance assessment organic unity, maximum limit arouse the enthusiasm of the latter. Last, it can promote business structure can promote optimization that makes banks developing the business which will lower the cost of capital. In order to be in the number of economic capital within constraints, and realize the maximum value creation, in recent years commercial Banks will make economic profit assessment which covers the cost of capital into the comprehensive evaluation system.As early as2005, Bank of communications has introduced the economic capital idea in its performance assessment measures, and it is one of the earliest commercial banks introduction of economic capital evaluation. One is that it will change the profit before examination into the profit after a provision. The other is making the index which includes the economic profits and economic return as the important content for the branch examination; increasing the assessment strength that economic capital takes up the lower middle business.But in practice, because of the later start, commercial Banks for economic capital measurement methods and economic profits of the examination way are mostly applied in the comparatively extensive stage. the phenomenon of "one size fits all" is more outstanding, not real effectively launched from business link real capital constraints role and implement incentive effect, thus affecting the commercial bank reform and the transformation and development.In this background, this paper basing on economic capital theory as a starting point, analyzed the credit risk model of measurement of economic capital, and with the application of the traffic bank economic capital as the research background, combined with the actual traffic bank branches in jiangsu province, through comparing and measuring the credit risk economic capital that metering of internal capital coefficient method, weight method and assets flucturation method three comparative study of measurement model. This paper analyzes the economic capital in the measurement, economic profit evaluation of the current situation and existing problems, combined with advanced method in the IRB in the start and the promotion, in the economic capital to work in the inspection and measurement of the application and explore a RAROC "as the core of the loan pricing and evaluation mechanism, and the diversity of the economic profits assessment mode puts forward related Suggestions.