Research On The Application Of Activity-based Cost Management In Intermediate Business Of Jiangxi Bank

For the four decades since the reform and opening up,commercial banks have been escorting the development of China's economy.In order to meet the needs of the development of the times,commercial banks have been gradually pushed to the market from the monopoly competitive position before and at the beginning of the reform and opening up.At present,the environment faced by commercial banks mainly includes the following challenges: first,there are many banks participating in the competition.As for the types of banks participating in the competition,including policy banks,stateowned commercial banks,joint-stock banks,urban commercial banks and foreign banks,all kinds of commercial banks have their competitive advantages;secondly,the business scope of commercial banks is similar.In terms of the main business of commercial banks,the asset business,liability business and intermediary business of all banks are basically the same;third,non-financial institutions and third-party payment enter the market.At present,the competition is not only among banks,but also among the competitors of other industries.Fourthly,commercial banks are becoming more and more international.With the deepening of economic globalization,foreign banks have settled in China,and China's commercial banking industry is moving towards the world.To sum up,the current market environment puts forward higher requirements for the competitiveness of domestic commercial banks.Activity-based cost management is committed to providing accurate cost information and eliminating value-added activities,which is obviously more scientific than the traditional cost management methods.It is imperative to implement activity-based cost management in commercial banks.Since the 1980 s,the proportion of intermediary business income in the total income of banks has continued to rise.Western commercial banks generally account for 30%-70%.The banking industry has gradually changed from the original "asset intermediary" to "service intermediary".At present,the interest income of deposit and loan of commercial banks in China still accounts for about 80% of the total income.In the face of the continuous reduction of the interest margin between deposit and loan and the fierce competition of foreign banks after the full opening of the banking industry,the development of low-cost,low-risk and high-yield intermediary business has become an inevitable trend.The Bank of Jiangxi selected in this paper is the only provincial city commercial bank in Jiangxi Province of China.In 2017,based on tier one capital as of December 31,2016,the bank ranked 329 in the banker's "ranking of 1000 major banks in the world";based on total assets as of December 31,2016,the bank ranked 22 nd in all urban commercial banks in China.This paper takes bank of Jiangxi as an example to analyze the current situation of cost management of intermediary business in Bank of Jiangxi.The purpose of this paper is to introduce ABC theory into the cost management process of commercial banks and establish an activity-based management system of commercial banks.Although activity-based costing originated from manufacturing industry,the increasingly perfect theoretical research and successful practice of Western banks have proved that activity-based costing can provide more accurate and real cost data for banks,help optimize business process and cost structure,and effectively support market decision-making positioning.This paper focuses on the analysis of the design of activity-based cost management in the intermediate business of Bank of Jiangxi,analyzes its cost accounting,cost control,and discusses its impact on the management's business decision-making,and makes a forecast for the effect of the implementation of activity-based cost management in Bank of Jiangxi,and puts forward a safeguard mechanism for the implementation of activity-based cost management in Bank of Jiangxi.The research shows that activity-based cost management is not widely used in China's commercial banks,but according to the nature of the intermediate business cost of commercial banks,activity-based cost management is also applicable in the intermediate business cost management of banks.From the applicability and superiority of activity-based cost management,it can be seen that the introduction of activity-based cost management into the intermediate business cost management of commercial banks will be the future development trend.In this paper,through case analysis,the application of activity-based cost management in intermediate business cost management of commercial banks is explained in detail,which provides a reference for later scholars.