Research On The Application Of Activity-based Costing In Commercial Banks

China has entered the “new normal” phase, which has a relatively low but more balanced economic development speed, it is a new and different stage. Under the circumstances, commercial banks will suffer from the weak global and domestic economic recovery. It is difficult to be spared. In addition, commercial banks themselves are also facing many challenges, such as financial disintermediation, the market-oriented interest rate reform, and more competitors, etc. Moreover, Internet finance continues developing, changing customer's financial behavior and consumption habits, it shrinks the profit margins of traditional commercial banks, so they have to strengthen their management and accelerate the pace of innovation.Management accounting, as an inter-disciplinary of modern management and accounting, plays an important role in accelerating the transformation of the bank's business strategy and creates a completive modern financial company. Activity-based Costing, as an effective cost accounting management tool, plays an important role to meet this target, which worth further research.In this paper, the author first analyzes the background of the dissertation, lists the theoretical results related to Activity-based Costing both in China and abroad. Then, the writer analyzes the current situation and the basic operation of costing methods in commercial banks, points out it's shortcomings, which leads to the discussion of the necessity and possibility of the implementation of activity-based costing in commercial banks.Then, taking S Bank as an example to survey, this thesis analyzes the current situation and the problems in costing, describes the implementation steps of activity-based costing in S Bank, and then make a contrast between the calculation results in two different ways.Moreover, the writer also makes an illustration on how to analyze the profitability of different clients in S Bank, which can help to choose and clarify the clients, and make a suitable pricing strategy to different clients.Finally, the author proposes feasible suggestions and problems, which need further study for the implementation of Activity-based Costing in commercial banks.