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A Research Of Microfinance Performance Evaluation Of Small And Medium-Sized Commercial Banks

Posted on:2016-02-15Degree:DoctorType:Dissertation
Country:ChinaCandidate:Q G ZhangFull Text:PDF
GTID:1109330503969935Subject:Management Science and Engineering
Abstract/Summary:PDF Full Text Request
Microfinance is an innovation of finance. Not only in China, microfinance has a rapid development in the whole world. It supports the people and companies that were difficult to obtain finance support, therefore, promote their development and prosperity. In our country, many commercial banks, especially the medium and small-sized banks, attach great importance to microfinance business, and have established their own microfinance strategies. Also, they enlarge their development room by covering the blanks of big banks in not providing finance support to small and medium-sized capital demanders. Studying the microfinance performance evaluation can help banks understand their business situation in microfinance and find out their weakness, so that they can take measures to improve their performance. The Sate Council issued "About the financial support the implementation of the small micro enterprise development" in 2013. Since then microfinance has played more and more important role to develop small micro enterprises. In the two sessions this year Prime minister Li keqiang mentioned expressly the popular entrepreneurship and innovation, microfinance should further widen the investment channels and provide the effective credit support for realizing this great goal. Therefore, this research has practical implications.Firstly, the thesis introduced the basic methods of commercial bank performance evaluation. This thesis designed a BSC performance evaluation model with five dimensions which are finance, customer, internal process, learning and growth and social responsibility. The model combined the financial and non-financial indicators, short-term and long-term interests and internal efficiency and external performance. It used the BSC to measure the performance evaluation of commercial banks and describes the establishment of indicators for each dimension. According to the characteristics of microfinance services, this evaluation system designed several performance indicators, such as adjusted EVA, microfinance net interest rate, customer revenue growth rate, customer new employment growth rate, the number of the innovative products and services of microfinance, professional degree ratio, business processes improving efficiency, the contribution of supporting innovative companies. These indicators can better reflect the characteristics of microfinance and the situation of performances therefore makes performance evaluation more reasonable.Secondly, this thesis set up the grey fuzzy comprehensive evaluation method based on the rough set. This thesis determined the rough set and evaluation set of evaluated objects firstly. Then, it confirmed the weights of every indicator and its membership vector and set up the grey fuzzy evaluation matrix. The thesis conducted the fuzzy arithmetic and normalization processing for the grey fuzzy evaluation matrix and the weight vector of indicators. Through combining the rough set, grey system and fuzzy evulation, it determined the objective weights of evaluation indicators.Also, the paper constructed adjusted risk-based EVA financial performance evaluation system. Financial performance evaluation index is the comprehensive index of the operating results of commercial banks microfinance. This is the core of the Balanced Scorecard and the starting point and end point of other dimensions. The thesis brought the risk factors into the calculation of EVA to construct a new financial performance evaluation system. At present, China’s commercial banks performance evaluation is largely confined to the traditional financial data. It tends to focus on financial indicators. However, the risk management and value creation ability do not get enough attention. EVA value management system makes up for the shortcomings of traditional performance management model. The introduction of EVA indicators into China’s commercial banks financial performance evaluation system has a high theoretical and practical significance for China’s commercial banks. The operating results of 12 listed commercial banks in 2013 was calculated using the system with weights of risk-adjusted EVA and other financial indicators determined by AHP. Then it compared the results with the Harbin Bank, and obtained the ranking results. The results can be helpful in improving and enhancing the business performance of commercial banks.Then, the paper used multistage grey fuzzy comprehensive evaluation model to conduct an empirical research of microfinance performance of Harbin Bank head office and its branches, and created innovation on the practical application of microfinance performance evaluation in the banks. Firstly, based on the first lever grey fuzzy comprehensive evaluation model, results of the evaluation of each dimension were obtained. After that, based on the grey fuzzy comprehensive evaluation results and weights for each dimension, it got second level grey fuzzy comprehensive evaluation results, which helped to obtain the microfinance business performance evaluation results for head office and branches in 2013. Finally, it used principal component analysis to conduct an empirical analysis for credit business performance of each branch of Harbin Bank, and produced the respective performance sorted results of microfinance for small business and farmers. The empirical results confirmed the feasibility of the BSC-based microfinance performance evaluation system this thesis constructed, verify the effectiveness and practicality of analytical methods and made specific commendations.
Keywords/Search Tags:Balanced scorecard, Microfinance, Performance evaluation, Rough set, Grey system, Economic Value Added
PDF Full Text Request
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