Innovation of Commercial Bank Financial Management

After joining the WTO, Chinese commercial banks and foreign banks are increasingly fierce competition, how to as soon as possible through the financial management innovation, enhance the bank's financial management capabilities, and constantly enhance the competitiveness of China's commercial banks, which is an important issue we face. The author combined with the actual work, to make some analysis and thinking.

First, in recent years, China's commercial banks, the main progress of financial management reform

In order to adapt to the needs of the development of modern commercial banks, in recent years, China's commercial banks continue to explore the new financial management system, and gradually complete the transition from the traditional financial management to modern financial management, which is mainly reflected in the following three aspects.

(a) Transformation of financial management objectives: ? Shareholder value maximization? The establishment of the goal

Since the mid-1980s, China's commercial banks have gradually established the ? The goal is to maximize the profitability of the company. The goal of the financial management. In recent years, with the listing of the four joint-stock commercial banks and the deepening of people's understanding of the modern commercial bank management system, most commercial banks have financial management objectives from the original? profit maximization? to maximize shareholder value. Maximizing shareholder value. Maximization of shareholder value The gradual establishment of the goal of maximizing shareholder value has a positive significance for improving the financial management ability of commercial banks and the competitiveness of commercial banks. From the perspective of the bank's property right relationship, the objective of maximizing shareholder value is of positive significance. The goal of maximizing shareholder value fully embodies the modern commercial bank's financial management ability and competitiveness. goal, fully embodies the modern commercial bank operation of the property rights basis, give full consideration to the reasonable requirements of the bank contributors, maintain the interests of the contributors; from the perspective of the bank's efficiency, maximizing the value of the shareholders? From the perspective of bank efficiency, the goal of maximizing shareholder value can truly reflect the soundness of commercial banks. goal can truly reflect the management requirements of commercial banks for sound operation and profit maximization, which is conducive to strengthening the bank's internal management and business performance assessment, and tightening all the bank's business activities around? Benefits to develop, so as to achieve the goal of maximizing shareholders' value. Maximizing shareholder value From the perspective of the bank's stakeholders, maximization of shareholder value is the key to the bank's success. From the perspective of the bank's stakeholders, adhering to the goal of maximizing shareholder value is conducive to the coordination of customers, shareholders and the public. The goal is to coordinate the relationship between customers, shareholders and employees, and to reasonably protect the rights and interests of all bank stakeholders.

(ii) the transformation of the basic principles of financial management: the strengthening of the principle of cost-effectiveness

From the point of view of the bank's operating practices, for a long period of time, the principles of financial management are not clear, and the requirements for the bank's financial management are not standardized. In recent years, ? The principle of cost-effectiveness? As a basic principle of financial management of commercial banks, has become a commercial bank financial management workers **** knowledge, and consciously follow in practice. For example, in some joint-stock bank financial management work, focusing on instilling ? Spend money to make money? The financial consciousness and? Save money faster than making money? Financial concepts, from 2000 onwards, the implementation of a unified budget and centralized accounting of the bank's financial expenses, the head office of the branch to implement? The head office has implemented the "Variable Expense Profit Margin" for the branches. and Specialized expense margins The head office has implemented the control indexes for branches, implemented the financial management method that expense growth must be accompanied by corresponding profit growth, and the branches have implemented the centralized accounting for financial expenses and the variable expense profit ratio for branches. Centralized accounting for financial expenses, variable expense index control, special management of special expenses, and centralized approval of large expenses are implemented at branches. The management approach. In terms of financial expense management tools, the original lagging management of financial expenses has been gradually changed to a pre-budgeting, financial department involved in the whole process of supervision. This total, branch, branch management mode, is conducive to give full play to the financial sector supervision, counseling role, is conducive to improve the quality of financial accounting, which is conducive to further savings in financial costs, improve the bank's operating efficiency.

(C) the transformation of financial management tools: the use of technology systems and scientific models

The traditional financial management work has long focused on the quality of accounting and post-event analysis, while relatively neglecting the development and application of more scientific technical models, which is clearly not adapted to the new situation of the bank's business management requirements. In recent years, China's commercial banks have made a lot of efforts to improve the technical level of financial management. Since last year, some listed banks have tried to utilize the ?SUMMIT system? and the McKinsey Profit Reporting System. McKinsey Profit Reporting System? which gradually account for costs and profits to departments, products and customers, providing an accurate reference basis for operational decisions and performance evaluation. On the platform of the two application systems of the head office, the branches fully utilize the secondary development data of the AS400 system as technical support, establish the Bank's financial analysis and forecasting database in accordance with the actual operating conditions of the branches, and set up mathematical models based on the modified time-series method, autoregressive method, and profit-sensitive factor analysis, etc., which are then applied to financial analysis, financial planning and forecasting to provide an accurate reference basis for grasping the operating conditions and formulating future operating policies of the entire Bank. These mathematical models have been applied to financial analysis, financial planning and forecasting, providing a more accurate reference basis for decision-making in order to grasp the operating conditions of the whole bank and formulate future business policies. Practice has shown that the use of technical systems and scientific models to improve the timeliness and accuracy of financial management data, enhance the level of financial management of commercial banks.

Second, the current financial management of commercial banks in the main problems

With the development of modern commercial banks on financial management requirements compared to the financial management of China's commercial banks, there are still a lot of problems in the financial management, mainly in the following points:

(a) the financial management system needs to be further adjusted

In the Financial management system, modern commercial banks require the head office of the branch treasurer to implement? Vertical management? and? Dual line of responsibility. On the one hand, the branch treasurer in the business of the head of the head of the bank is responsible for the treasurer, the implementation of the relevant financial policies of the head office, and has the responsibility to the superior at any time to report on the major financial behavior of the institution and the major business decision-making responsibilities; on the other hand, the treasurer should be responsible for the internal day-to-day financial management of the institutions engaged in assisting the head of the institution of the management of the business management, to participate in the institution of the major business decision-making. On the other hand, the treasurer shall be responsible for the internal daily financial management of the organization, assist the head of the organization in business management, and participate in the major business decisions of the organization. In principle, the appointment and dismissal of the treasurer, job transfer, salary adjustment should be decided by the parent organization, the person in charge of the institution only participate in the assessment. At present, most of the commercial banks in China are still implementing the traditional practice of the treasurer is still responsible for the head of the organization, the system caused by. The consequence is that the branch treasurer to the branch president (or the line leader in charge of finance) is responsible for the branch treasurer to the branch president (or the line leader in charge of finance) is responsible for the formation of a decentralized financial management system, which is not conducive to the full play of the financial management function.

(2) Financial management methods need to be further improved

? Maximize the interests of shareholders? The financial management objective does not exclude the pursuit of other non-shareholder interest subjects (such as customers, employees) to maximize the interests. Maximize the interests of shareholders to maximize the bank's profits as a prerequisite, and employees are the actual implementation of profit maximization, to fully mobilize the enthusiasm of employees, it is necessary to maximize the realization of the interests of employees. In recent years, many of China's commercial banks to implement the implementation of the head office of the profit plan and staff income directly linked to the internal income distribution method, that is, the profit return method, so that the scientific determination of the benchmark profit is particularly important, because the level of staff income depends directly on the head office of the profit plan issued by the bank. In practice, although most commercial banks have been revising their internal distribution methods in recent years based on the actual profitability of their branches, the lack of a scientific measurement model and measurement methodology makes it difficult to ensure the accuracy of the comprehensive analysis and measurement of their profit plans, which can easily lead to differences in the results of the internal distribution and the actual level of profitability of the various branches, and thus affect the reasonable distribution of employees' incomes.

(C) The quality of financial management personnel needs to be further improved

At present, China's commercial bank financial management personnel are mostly trapped in the day-to-day operation and management of affairs, most of them lack of effective, high-level professional training, lack of relatively independent management capabilities and sense of innovation, and can not be fully adapted to the development of the modern commercial bank on the requirements of the quality of financial management personnel. The quality of financial management personnel requirements.

Third, to promote financial management innovation, enhance the financial management capabilities of commercial banks

The new situation of financial management concepts, personnel quality, as well as the objectives of financial management, means and responsibilities of the positioning, have put forward higher requirements. To further enhance the financial management ability of China's commercial banks, it is urgent to vigorously promote the process of financial management innovation.

(a) management concept and institutional innovation

Further clarification of the functional positioning of financial management, the effective implementation of? Business cooperation type? and The main support decision-making?

First, prevent and avoid financial risks, correctly handle the relationship between management and development, and promote business development through good financial management. In the new situation where commercial banks are operating more and more complex businesses and more and more innovative products, the factors that lead to the emergence of bank financial risk are more, the difficulty of preventing bank financial risk is greater, and the requirements are naturally higher. Maintaining the principles of objective, fair and sound financial work is the key to the effective development and sustainable development of banking business under the conditions of the market economy, and the treasurer should work wisely and prudently to prevent and resolve financial risks and ensure the rapid development of the business. We should give full play to the professional advantages of the financial management department that is familiar with financial, tax, accounting laws and regulations, and skillfully use and comply with relevant financial and tax policies to ensure that financial risks are avoided and tax benefits and profits are maximized in compliance with the regulatory requirements of the People's Bank of China, the Securities and Exchange Commission, and the Ministry of Finance.

Secondly, to establish? The one who gets the market gets the world? s financial awareness to support business and product innovation. According to the principle of cost-effectiveness to evaluate and test the new business, new varieties of economic efficiency, focusing on promoting the development of profitable business, the implementation of the efficiency of the target financial support package, to promote the rapid development of the market for new products and growth-oriented new products.

Third, the correct treatment of long-term interests and immediate interests of the relationship between the fierce competition in the market environment, financial management should be looking for now and the future can be profitable balance. Now invest in the future profit business, financial managers should dare to support, dare to break through, to have a keen market insight, focusing on long-term interests, not just limited to immediate interests.

Fourth, to capture financial information for business development to provide real-time reliable financial information support. In the face of the pressure of business development and enhance market competitiveness, financial management should give full play to its own advantages, through financial forecasting and financial analysis, to establish a strong information security system, so as to provide timely, accurate and rich financial information for business development and development.

(2) Management method innovation

Promote financial management method innovation, improve the scientific nature of financial management.

First, improve the scientific nature of the forecast and distribution of financial planning indicators. In the past, the issuance of various business indicators, often by virtue of the leadership of the expectations of the leadership or the industry figures to compare the simple way to carry out, the lack of scientific measurement basis and persuasive, and easy to subject to the subjective will of the financial staff and financial management level of the serious impact. In order to improve the accuracy and objectivity of financial forecasting, such as the issuance of profit targets, it is possible to comprehensively consider four factors, such as the historical development pattern of branches, the market share share of the same industry, the leadership's expectations and foreseeable factors. Firstly, according to the historical business data of each branch, analyze and find its business development law, and without considering the influence of the other three factors, establish the corresponding mathematical model for its business development law through the mathematical methods such as regression analysis, principal-volume-profit analysis, profit sensitivity analysis, etc., and make use of the model to measure the historical business data, find the difference with the actual data, and determine the influence of the other three factors on the difference. the impact of the other three factors on the discrepancy, and then determine the weight of each factor. In the actual forecast, according to the weight of the factors, the forecast data can be corrected, such as the average daily assets and liabilities, the end of the assets and liabilities scale, the cost of liabilities and return on assets, the internal structure of assets and liabilities, the total cost of the projected value of the business indicators, and loan margins and deposit margins and other indicators to proof, and finally as a basis for the issuance of business indicators.

Secondly, we allocate the scale of fixed assets according to the needs and standardize the management of leasing and decoration of business premises. The company's management model is to issue a directive index of fixed asset ratios to the head office, with the branches using the ratios on a need basis. The fixed asset ratios can be issued on the basis of the number of institutions in each branch, the scale of business development, and profitability and other factors, and to change the way of matching the fixed asset ratios with the scale of the business.

Third, the fixed cost indicators (such as business premises rental and decoration costs) can be managed as guiding indicators. Branches through the current and forward financial forecast analysis, combined with the local peer market level, consumption level and branch of the current year and future prospects analysis, in order to ensure that the completion of the current year or the future profit plan under the premise of the use of leasing fees and renovation costs are allowed to be carried out according to the financial forecast. The head office, through the means of pre-supervision and post-evaluation, may take the equivalent amount of profit deduction to monitor and penalize the branch's forecast analysis that is not in line with the actual situation.

Fourth, the control of special expense indexes takes an approach linked to the scale of business. The management of special expenses can be in accordance with? The management of special expenses can be based on the principle of vertical management and proportional control. The principle of vertical management, proportional control? According to the use of branches over the years and the growth of scale over the years, the relationship between the growth of the scale of business of the branch over the years and the growth of special expenses, that is, the scale of the cost rate, the minimum standard issued, more than the rate, take the amount of deduction of profits and other ways to achieve the purpose of cost savings.

Fifth, the use of advanced financial management tools to improve the assessment system. Some commercial banks are promoting the ? McKinsey profit reporting system? The use of regression analysis, set up a scientific and reasonable mathematical model, can analyze the benefits of individual products, departmental benefits, customer benefits, single capital benefits and employee contribution benefits. Currently in the practice of China's commercial banks, the main indicators of the assessment of account managers are business development indicators, the implementation of the percentage system of assessment and distribution methods. The biggest drawback of this assessment method is that there is not a **** the same pivot point in the business indicators? efficiency, the correspondence between business indicators and employee remuneration is inconsistent, and the comprehensive performance of account managers is difficult to accurately reflect. We can try to take the assets and liabilities index as the assessment index, through the financial forecast, the use of internal funds transfer price as a regulating lever, derived from the customer simulation profit, looking for the proportion of the relationship between the profit and the salary, so as to objectively and fairly assess the performance of the account manager.

(C) financial talent management innovation

Adapt to the needs of the new situation, quickly cultivate a high-quality, heavy management, good pioneering, fair and pragmatic financial management team. First of all, we must grasp the talent access link. According to the People's Bank of China on the qualification of financial practitioners, strictly select those with good professional ethics, practical experience and professional knowledge of the talents into the commercial bank financial management team, strict implementation of the licensing system. In addition, it is necessary to grasp the training link and performance assessment link.

The driving force of development comes from innovation, commercial bank financial management must be changed due to the situation, and constantly improve the level of financial management, to better promote the healthy and rapid development of commercial banks.