Discussion On The Commercial Bank Performance Index System Evaluation

Management produces evaluation, in return evaluation improves management. To scientifically, reasonably, systematically and timely evaluate a commercial bank management performance is not only an important method, but also a basic principle to reach correct management decisions and perfect process control. With the development of bank industry and scientific & technological advances, people have begun to perceive commercial bank management on the basis of rationality rather than sensibility. More and more scientific evaluation systems are being used to observe, recognize and adjust complicated phenomena of commercial bank activities.In this paper, we probe into evaluation system by three sections.To begin with, we primarily review the status in quo of commercial bank performance evaluation. In this chapter, we firstly depict how international commercial banks adapted its evaluation system to the changes of industry development, the enforcement of outside regulations, the supervision of social public, the information & technology development and the emergence of new economy, and how they evolved their evaluation systems from single business examination to financial index oriented assessment which pay great attention to the harmony among liquidity, security and profitability, and to strategic management performance evaluation index system, also called Balanced Scorecard, which emphasizes the reveal of financial results and future direction by means of both financial index and non-financial index. After that, we analyze the characters of the three different development phases of Chinese Commercial Bank evaluation. Thirdly, we discuss new economy's character and its impacts on commercial banking industry, as well as the deficiencies of existing evaluation index system in the new situation. In the end, we give the clues of idea about how to improve commercial bank performance evaluation index system in accordance with present commercial bank management and macroeconomic reality.Chapter Two mainly deals with the study of how to consummate financial performance evaluation index system of Commercial bank, which is based on the history analysis. Firstly, we set up commercial bank performance evaluation index system which focuses on liquidity, security, profitability, efficiency and continuous development; Secondly, in order to offset the deficiency of existing profitabilityperformance evaluation index system in our commercial bank, we explore the concepts on how to improve profitability evaluation index system with EVA analysis; At the same time, we discuss two problems of Commercial bank enforcing EVA by cost specification and reasonably establishing internal transfer price.The third chapter describes how to develop non-financial sectors' strategic performance evaluation index system of Commercial bank. The appearing and applying in Commercial bank of "Balanced Scorecard" are reviewed. And a new performance evaluation index system is discussed in customer, inside control and study aspect.In conclusion, in new economic situation, the accomplishment of commercial bank's strategic targets and financial objective lie on to a series of inside and outside indications. To take inside indications into consideration is of great importance. To take outside indications into account is also of much importance. Thus, commercial bank performance evaluation index system should include both financial and non-financial index. And the whole commercial bank performance evaluation index system is the combination of financial and non-financial index, quantitative and qualitative index past performance evaluation and future performance evaluation, inside slayer and outside slayer, and also the combination of continual development and relative stabilization.