文档介绍：本科毕业论文(设计)
外文翻译
原文:
Using Activity-Based Costing (ABC) to Measure Profitability on mercial Loan Portfolio
petitive environment in the banking/financial institution industry has made it very difficult to increase revenues and market share that is sufficient in growth and maximizing shareholder's wealth. The minimal growth in the area plus the over saturation of banks, financial institutions and other sectors (panies, insurance agencies, panies, etc.) competing for the traditional banking products has forced banks to look at ways to control their costs to reach the profitability levels that are necessary to appease their shareholders.
The only way to control expenses is to have a better understanding of how certain products and how they are setup to contribute to the overall expenses in day to day operation of a bank. The traditional costing system in banking does not effectively assign actual costs to the actual transaction. This is where activity-based costing will give bank managers a greater understanding of the true cost and profitability of all transactions in daily processes in the bank.
Activity-based costing can be used in all areas of banking, and in some banks it is used in analyzing checking accounts for businesses. However for this study, we will be looking at how activity-based costing can be used to determine the true profitability of mercial loans transitions in the munity bank.
Commercial loans represent % of the bank's total loan portfolio as of December 31, 2006. So it is a major contributor to the overall revenue of the bank. However, commercial lending also represents a major expense of the bank. In general, mercial lender and the Chief Credit Officer, manage mercial lending portfolio. Aside from the Chief Executive Officer, these two officers have the two highest salaries in the bank. Also, commercial loans have to be
managed a lot more closely with the review of financials and monitoring of collateral that is not required with othe