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In achieving the objective of sustainable development, commercial banks are inevitably requested to build a reasonable and practical resource allocation system, so that accelerate the financial value creation capabilites. Meanwhile, every admininistrative level of commercial banks should establish financial resource allocation system compatible with that of the head office, especially in strategic objectives, business mode, organizational structure, and information management, et al. Compared with commercial banks of developed countries, backwardness could be seen in financial resource allocation and management fields in our contury, including financial management and the index system, financial capital and cost management, financial management environment, et al., which results in bank’s disconnection between resource allocation and management reform.Based on the analysis of the financial allocation theory and cost benefit principle, and instruction of modern economics, finance and econometric theory, meanwhile, many kinds of analysis, such as normative and empirical analysis, qualitative and quantitative analysis, this paper gave a thoroughly review and analysis on the financial resource allocation of the Business Department of Industrial and Commercial Bank of China Zhejiang Branch, with intensification on the management modes and impacting facts. Furthermore, combined with the business department’s development needs and its organizational structure peculiarity, the financial allocation management system with an overall precision was designed. The new designed system has three distinguished features, including,(1) the classification allocation of financial resources were realized based on the cost behavior theory, reevaluation and optimization of the level of resource allocation and (2) sub-regional level incentive model was established, which tallied nicely with the regional economic development and resource supply expenditure trends, by means of internal controls, matching head office value orientation, and comprehensively considerding administrative privileges and the level of costs and revenues.(3) classified and scientific based fine allocation program was designed, for specific quoted controlling resource, according with the resource scarcity, meanwhile, budget control guide and performance evaluation were considered.Compared with existing financial resource allocation system of commercial banks, the proposed financial resource allocation system emphasizes the opportunity of strategic transformation and regional development, and carries out the tactics with value creation as the highly energetic core, meanwhile, makes intensive attention on the combination of scale development and efficiency constraints. Improvements were made on the following aspects, i.e., firstly, this system pays more attention to the invest efficiency, by introducing ROI (Return On Investment). Secondly, this system has more quantitative management capabilities on resource using, with classification by the penetration of the sub-branch management branches. Thirdly, the system enhances the agreement with the total strategic objective, by screening important allocation indicators.
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