利用作业成本法（ABC）衡量商业贷款组合的盈利能力.doc

本科毕业论文（设计）外 文 翻 译原文：Using Activity-Based Costing (ABC) to Measure Profitability on a Commercial Loan PortfolioThe competitive 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 shareholders wealth. The minimal growth in the area plus the over saturation of banks, financial institutions and other sectors (mortgage companies, insurance agencies, internet companies, 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 all commercial loans transitions in the small community bank.Commercial loans represent 81.26% of the banks 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, the commercial lender and the Chief Credit Officer, manage the commercial 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 other loans. This adds expense due to the lenders time, but the loan assistant has to take time to collect the needed data and performed other tasks that will be mentioned later in the study.The institution is a small-community bank entering its 7 year of existence. As a relatively new, small-community bank, there are many advantages that can be levered towards better customer service. These advantages come from the ability to make approvals and decisions fast and locally, which eliminate a lot of red tape from the larger corporate-ran-banks. Also, decisions can be based on a case-by-case basis instead of whether the customer is a Tier 1 or Tier 4 determining what level of service the customer would receive.However, there are some disadvantages in the cost area. First, the bank is more dependent on Certificate of Deposits (brokered and local), Federal Home Loan Bank lines of credit, and Federal Funds Purchased. These funding sources are typically much more costly than demand deposits, savings, and money markets. Typically, the small-community bank cannot and does not have the resources to market and obtain these cheaper deposits. Also, the limited amount of locations sometimes limits the amount of checking and savings accounts the bank can open for the customers. This bank has 63.43% of its total deposits tied up in Certificate of Deposits. To make a comparison; other bigger banks in the same market (Old National Bank) has 41.13% of its total deposits in CDs.The other main disadvantage is the economies of scale that the large corporate bank has over the small-community bank. These savings are found in centralization, and more directly in salary savings in certain tasks. This bank has Chief Credits officers salary or the commercial lenders salary cost when doing the analysis to underwrite the credit or perform the annual analysis after the credit is booked. The large corporate bank has analyst making approximately half the salary taking care of the same work. This, also, allows its higher paid lenders to spend its time locating new business in the market place.Traditionally, when community bank attempts to determine the profitability of a credit, most of the costs are simply allocated to the credit based on its percentage of the total overall portfolio. These costs are salaries, cost of funds, and provision of loan losses. This methodology would be appropriate if all credit were created equal. However in reality, no two credits are alike. Some credits take a lot of management, while some credits go on the books and require little additional work.Without a true understanding of the cost of a credit, it makes it difficult for bank management to decide what business are the best credits to use its resources to pursue. To obtain a better understanding on more accurate actual cost, a bank should consider implementing an activity-based costing.The Activity-Based Costing (ABC) process attempts to give a better understanding and accurate assessment of the costs associated with producing a product or service and delivering it to its end-users. It looks at the activities associated with producing the product and service and the amount of resources that are required for these activities.ABC is further defined as:1. A more accurate cost management methodology2. Mostly focuses on indirect costs (overhead)3. Traces rather than allocates each expense category to the particular cost object4. Makes indirect expenses directOne of the reasons to use ABC system is when there is a lot of competition. As stated earlier in this study, the over saturation of banks, financial institutions and other sectors competing for tradition banking business provides a competitive environment that requires the need for a better understanding of costs, which makes the use of ABC imperative to obtain the levels of profitability required by the company and shareholders.The five steps of the ABC process are: Identify Activities, Determine Cost of each Activity, Determine Cost Drivers, Collect Activity Data, and Calculate Product Cost.The following have been determined as the necessary activities when making a loan at the bank.Underwriting - This is the process where the loan officer reviews the financials of the borrower to determine if the bank should extend credit. Depending on the total committed liability to the borrower, there are more steps required to complete underwriting. Also, the higher the committed liability, the loan officer may have to present the credit to the CCO, CEO, Board Loan Committee, or the entire Board of Directors.Documentation Preparation and Set-up on System The more complex the credit, the more time it takes for the loan assistant to produce the needed documentation and set-up of the loan on the bank system.Review of Documents and Closing of LoanThe loan officer must review the documents for accuracy, and then must perform the loan closing.Cost of FundsLoans are funded through deposits in the bank or from borrowings from the Federal Home Loan Bank and/or Federal Funds Purchased.Provision for Loan LossEach loan requires a portion of the income set aside as a provision for loan loss. This information goes to the Allowance to Loan Loss, which is an asset account set aside to cover losses when bad loans are charged off.PaymentPayments can be made either manually or electronically. Manual payments require the loan assistant to produce tickets to apply the payments to the system. On Revolving Lines of Credits, there may be extra payments made as principal reductions.Loan AdvancesIn a line of credit, all the money is not taken out at closing so later on funds must be advanced to the borrower. If the customer has a checking account, the funds can be directly deposited in their account. If not, a cheek must be written and sent or picked up by the customer.MaintenanceSometimes payments or advances are miss-posted so this requires the loan assistant to make corrections on the system.Insurance Follow-upThe loan assistant must follow up with insurance agencies to make sure that loans with collateral have insurance still in place during the life of the loan.Collection of FinancialsAt certain levels of borrowings, the bank requires yearly financial information to do annual reviews. The loan assistant sends letters to request financial information and updates the credit files. In most instances, the processor has to make copies of the financials.Annual ReviewsThe loan officer annually reviews the financial information collected on each borrower to review the companys performance. The review is used to determine that a credit is properly risk rated (the rating determines how much should be reserved in the loan loss for the potential loss) and to determine if there is any action plan needed by the bank.Calculate Product CostSince the activities have been identified, costs of each activity determined, the cost drivers determined, and data collected, one can now calculate the cost of each loan and determine the remaining profitability after subtracting the costs from the interest income plus loan fees. Exhibit 2 takes the collected data and converts it to an actual cost figure. These cost figures are now subtracted from interest income and loan fees. The exhibit shows the profitability of each credit under ABC system.Traditional Costing NumericallyAs mentioned earlier, banks usually use traditional costing to determine the profitability of a loan. For this bank. Interest Income, Loan Fee, and Cost of Funds are determined by the same method as it is in ABC. The difference comes in the Provision, Loan Processor Cost, and Loan Officer Cost.For the provision, the total cost is divided by the total loan portfolio, and then multiplied by the balance of the loan to determine the loans portion of the provision. On the Loan Processor Cost, processor is responsible for the entire commercial loan portfolio. So processors salary is divided by the entire commercial loan portfolio, and then multiplied by the balance of each loan to determine processors allocated cost for each loan. The loan officers salary is divided by the portfolio, and then multiplied by the balance of each loan. This amount is then allocated to each loan.ConclusionTraditional costing is much easier to calculate than ABC. So the question is, why would one choose to use ABC? ABC gives a true cost for a loan compared to traditional costing, which allocates most of the expenses more accurately. Banking has become very competitive, and it has become imperative that banks like any other businesses allocate their resources to the most profitable areas.What did our research study show on a commercial loan portfolio at a small-community bank? First lets look at Exhibit 4, which shows the profitability of the same loans under ABC and Traditional Costing systems.In all loans, except for 3 (#3, 5, and 6), ABC system shows greater profit than Traditional system. Why is this and what can be concluded from this result?First, when we look at the three loans that differ from the majority. Loans #5 & 6 were the only two loans that were in the under $50,000 in underwriting. This shows that if expenses are not allocated. These loans are not as profitable for the bank because there is not a whole lot of relief on costs because a similar amount of work is required. The only really break is in the cost of funds and provision. Loan #3 is similar to the other two in the fact that it is small in size. However, since it is a part of a larger relationship, it had to be taken to the BOD for approval so a lot more underwriting work was required.What ABC system shows us here is that the bank needs to look at a junior lender at a smaller salary to handle these smaller loans. This may also shows us that the loan officer has a lot of smaller relationships that are taking to much time and takes away from securing larger relationships that do not cost as much as the smaller loans when looked at cost as a percentage of loan balance. The regular lenders compensation needs to be concentrated in the larger loans. Finding accurate cost is one of the best ways to increase profitability of the bank to maximize shareholders wealth. The final conclusion is that there are some work hours that are not accounted for in ABC system. This is reflected in profitability being higher in almost all loans in ABC system when compared to Traditional system. However, most of these hours can be attributed to prospecting for business and attending civic events. With these so-called non-production hours or non-value added activities, it is imperative that the production hours are maximized and productivity increased to help companys overall profitability.Source: Mehmet C. Kocakulah 2007. “Using Activity-Based Costing (ABC) to measure profitability on a commercial loan portfolio”. Journal of Performance Management. September, pp.29-46.译文：利用作业成本法（ABC）衡量商业贷款组合的盈利能力在银行等金融机构行业的竞争环境中，要想增加收入和已经获得足够成长和股东财富最大化的市场占有率已经非常困难了。在该领域的最小的增长再加上过于饱和的银行，金融机构和其他部门（按揭公司，保险公司，以及网络公司等）与传统的银行产品竞争，迫使银行寻求控制成本的方法，以达到必需的盈利水平满足他们的利益相关者。控制成本的唯一方法，是有一个更好的关于如何确定产量和它们是如何设定日常的整体成本贡献以维持一间银行的日常运作。银行业的传统成本系统没有有效地将真实的产品成本分配到现实的业务中去。这就是为什么作业成本法能带给银行管理人员更好地了解银行在日常业务过程中真实的成本和盈利能力。作业成本法可以用在所有的银行业务领域，在一些银行它被用来分析业务过程中用到的支票账户。然而，对于这项研究中，我们将研究作业成本法为何能用来确定小型商业银行所有商业贷款产生的真实利润。截止2006年12月31日，商业贷款作为银行贷款的一种，其利息收入占据银行总贷款收入的81.26。所以，它是银行总收入的主要贡献者。不过，商业贷款也成为了银行的主要开支之一。一般情况下，商业银行和首席信贷官，管理商业贷款的部门。除了行政总裁，在银行中的这两名人员有最高的工资。此外，商业贷款相比其他贷款来说，需要通过更多的回顾财务状况和监测抵押物来管理。由于贷款人的时间而增加了成本，但贷款的助理需要花费时间来搜集所需的数据和完成其他任务，这些将在后面的研究中提出。该机构是一种小型的社区银行，它正进入其第7年的生存。作为一个相对较新的，小的社区银行，相比而言，在客户服务方面有更好的优势。这些优势产生于更快地在本地做出批准及决策，在当地，它消除了很多繁琐大量的公司银行间奔波。此外，可以根据业务逐案基础上来决定，而不必根据客户是否属于第1级或第4级来确定客户可以接受什么级别的服务。然而，在成本方面存在一些缺点。首先，银行更多的是根据存款证明，美国联邦住宅贷款银行信贷额度以及联邦基金购买而定。这些资金通常来源于远远超过活期存款，储蓄和货币市场等成本高昂的资金。通常，小的社区银行不能，也没有足够的资源去市场获取这些“便宜”的存款。另外，由于地理位置的原因，有时限制了支票的使用和减少了银行为客户开放的储蓄账户。这家银行拥有存款总额的63.43，被捆绑用来作为存款抵押。做一个比较，在同一规模市场上，较大的银行中只有占存款总额41.13的存款抵押。其他主要缺点是大型企业银行的规模经济远远超过小社区银行。这些储蓄被集中建立起来，在确定的业务上员工储蓄可以更直接。在签署借贷或执行每年预定借贷后的分析时，这家银行有首席信贷员的工资或商业借贷者的工资成本。大型企业有银行分析师做相同的管理工作大约花费一半了的工资。这也允许其高收入的信贷员把时间花在寻找市场上的新业务。照惯例，当社区银行试图去决定信贷的盈利能力时，绝大部分的成本仅仅只是分配给了基于所有盈利部门的信贷。这些成本是工资，存款成本和预提贷款损失。这种方法适用于所有的信贷都是平等的。然而在现实中，没有相同的两项信贷。一些信贷需要付出很多管理，而另一些信贷只需登记入账和很少的额外工作。对于信贷成本没有一个切实的理解，会对银行决策关于通过使用它的资源来推行哪种业务是最好的信贷的管理造成困难。为了获得关于更准确真实的成本的更好的理解，一个银行应该考虑使用作业成本法。基于作业的成本核算（ABC）的进程试图提供更好的了解和准确制造产品或服务的成本分配，并提供给其最终用户相关的成本的准确评估。它着眼于与制造产品和服务以及对这些活动所需资源的数量相关的活动。ABC是进一步定义为：1、一个更精确的成本管理方法；2、主要集中在间接成本（管理费用）；3、描绘而不是分配各项支出类别到特定成本对象；4、使“间接”费用“直接”化。使用ABC系统的原因之一是存在很多的竞争。正如在这项研究中开始部分，银行，金融机构和其他行业为传统银行业务提供了一个过饱和的竞争环境，这需要一个更好的关于成本的了解，这使得使用ABC法成为公司和股东要求获得必要盈利能力水平的迫切需要。作业成本法过程的五个步骤：确定活动，决定每项活动的成本，确定成本动因，收集活动数据，并计算产品成本。下面是已被确定作为在银行贷款时必要的活动。核保这是银行信贷员审查借款人的财务状况，以确定是否应该扩大银行信贷的过程。对总借款人承担责任的不同，需要有更多的步骤来完成核保。此外，信贷员可能需要考虑对CCO，首席执行官，董事会贷款委员会，或整个董事会等有较高的法律责任的信贷。文件的编制和系统设置信贷越复杂，花费在贷款助手去制作必要的文件及对银行贷款系统的设置的时间也更多。审查文件及谈妥贷款信贷员闭幕审查必须审查的文件的准确性，然后必须执行贷款闭幕。基金成本贷款的资金来自于银行存款或从美国联邦住宅贷款银行借贷及联邦交易基金。