Applications of Economic Capital Management System in Risk Management of Commercial Bank

摘要

U.S. financial crisis in 2008 made the deficiencies in risk management of new Basel Ⅱ exposed. In August 2008 the Basel Committee proposed in the "economic capital model of practice" that it will evolve the framework that assesses the banks' economic capital into the Pillar 2 of Basel Ⅱ. China is introducing economic capital management system in accordance with the requirements of Basel's new agreements. Industrial and Commercial Bank of China launches a comprehensive economic capital management system, it implements a system in which the Economic added value is the very key indicator, and develops an integrated system in product performance evaluation.