Research On The Improvement Of Economic Capital Management In ICBC Gansu Branch

The Gansu Branch of ICBC is one of the hereinafter branches of ICBC.The emphasis on the concept of economic capital management is later,especially in the aspects of risk concept,measurement technology,data collection and system construction.In 2015,ICBC Gansu Branch put forward a comprehensive risk management year implementation plan,developed a detailed stage of the goal,and strive in the next few years to build a sound economic capital management system,including improving the product structure,performance appraisal and budget planning substantially.At present,ICBC Gansu branch has been introduced EVA and RAROC in the business line;teaching and training staff to acknowledge economic capital management,enhancing the staff,so that all employees have a sense of capital conservation.Although the ICBC Gansu Branch attaches importance tothe study of economic capital management approach,but it is lack of practice in the area of measurements,the preservation of historical data and the rules of promoting capital management.There are still many problems in the process.Compared with the other branches,there is still a big gap in the aspects of understanding and operation,at the same time,there is still some room for improvement compared with the objectives set by China Banking Regulatory Commission.According to the survey,the research of economic capital theory in ICBC Gansu branch is still in the initial stage,without the initiative to change and create their own system capacity.This paper discusses the existing economic capital management of ICBC Gansu Branch,and puts forward the corresponding improvement strategies.From 2015 to 2017,the economic development situation in Gansu Province is in a slow pace.The wholesale and retail-based business environment has been hit by the industry downturn.Many enterprises faced bankruptcy due to the upstream caused by shrinking profits,which marking the region’s economic development is facing a severe test.ICBC Gansu branch has the largest financial institutions in Gansu Province,also suffered a serious impact in this economic cycle.How to strengthen the comprehensive risk management level and convert from extensive management to intensive management.The purpose of this paper is to find out the areas that need to be improved in the practice of economic capital management of ICBC Gansu Branch,and put forward the corresponding improvement strategies.