Method Research On Performance Evaluation Of Commercial Bank Branch

With the entry into WTO, the competition of banks becomes intensive.Evaluating performance of banks is paid more attention to. How to evaluating thewhole performance of banks by using scientific method accord to the presentcondition of our commercial banks is a severe problem facing to commercial banks.Most related research at present are concerned with parent banks while few peoplecare about the research of branches. Because the structure of our banks is parent,subsidiaries and branches, the first level corporation is parent bank and the brancheshave no the position of corporation , so some indexes are invalid or no practicable forbranches. This article design the system for branch banks by using Analytic HierarchyProcess (AHP) by aiming at the prevalent problems in evaluating performance ofbank. It includes five facets: integrated benefit,security of assets,liquidity of assets,capability of development and internal management. Combine with the presentcondition of evaluation in certain branch of Rizhao, this article use the new designedsystem and the method to analysis.This article begins with the background and realistic of the theme and gives thebrief introduction of the Western countries's theories about evaluation achievement ofbanks. Subsequently, this article points out the present conditions and problems ofevaluation of Chinese banks. Then introduce the method of AHP to evaluationperformance of banks and it point out how to calculate the value of index and useAHP to ascertain the proportion of index in terms of our banks' practice. Then, thisarticle analysize the branches of Rizhao commercial bank. This article elementarilyconstruct the system of evaluation branch's performance and quantified method andapply the method of fuzzy evaluation to qualitative index to gain the score and makeall data nondimensional to synthetically evaluate the performance. At last it drawconclusion and put forward proposals. This article provides a new researching methodto synthetically evaluate the performance of commercial banks.