The Study On The System Of Performance Evaluation Of State-owned Commercial Banks

Evaluating the operating performances of commercial banks scientifically is very useful to forecast and control the risks of bank and get optimal operating benefits as well. With the development of the corporate structure of commercial banks,it is a common agreement for stockholders and managers that the value maximum of banks is the final goal. Evaluating the operating performances of commercial banks scientifically can change the conflicting situation between stockholders and managers; therefore it can promote the development of banks and carry out the growth of bank's value.It has been a long time that people who are both in theory and in reality tend to use financial indicator to evaluate the operating performances of banks. However,the single indicator,such as Net Profit,Return on Equity,and comprehensive The Du Pont System both come from financial report which have the fault of accounting information and can not reflect the operating performances accurately. So,theorists have found a new method of evaluating the operating performances in order to improve the effect of evaluation. The most popular evaluating method are Balance Scorecard , Key Performance Indicator and Economic Value Added (EVA).The paper put forward the building of performance appraisement system of Chinese commercial bank based on the various methods of performance appraisement. Firstly we are focused on Balance Scorecard to build the strategic goal and general plan of organization and then implement Key Performance Indicator,Goal Setting and EVA in different departments in order to get to the balance between short and long indicators; resultant and causal indicators; subjective and factual indicators: establishing stratagem and actualizing stratagem indicators: financial and non-financial indicators. As a result,it can have a comprehensive appraisement of bank's operating performance.This paper mainly studies the following aspects about performance evaluation system of commercial banks:Chapter 1: Starting from the background of performance evaluation system of commercial banks. Analyzing the developments of performance evaluation system of commercial banks at home and abroad,through these studies,we educe the emphases and key problems of this paper.Chapter 2: Theory of performance evaluation system of commercial banks. Including three contents:①Concept of performance and performance evaluation,elements,processes and functions of performance evaluation;②Indicator system of performance evaluation. Including basic requirements,characteristics and principles of choice of building indicator system;③T he building and design of performance evaluation system.Chapter 3: Based on studies of performance and performance evaluation in chapter 2,we discuss performance evaluation system of commercial banks,including two parts:①functions,contents and types of performance evaluation system of commercial banks;②Factors analysis of performance evaluation system of commercial banks,including the relationship of performance evaluation system and performance management,property right influences performance evaluation,human resources management system influences performance evaluation.Chapter 4: method study of performance evaluation system of commercial banks. Including Key Performance Indicator,Balance Scorecard,Goals Goal Setting and Economic Value Added (EVA).Chapter 5: Empirical Study according to the first four chapters,building performance evaluation system of Industrial and commercial bank of Jilin branch. Including framework of industrial and commercial bank of Jilin branch,method of indicator system design,building performance evaluation system of organization,department and post.Chapter 6: Conclusion and putting forward further research areas on performance evaluation system of commercial bankThrong these studies,firstly,we hope it can help the commercial banks in our country fit to the market economy,are compatible with the development trend of international commercial banks,meet International practice. And then achieving a series of management innovation,system innovation,further improving the management level , perfecting the management mechanism , arriving at Comprehensive development. Secondly,it can provide the most intuitionistic standards for investors and financial consumers,increase the transparency of commercial banks in the public,and then make a real contribution to the modern commercial banks.In conclusion,in the process of improving the performance evaluation system of commercial banks requires us to prepare in advance.We must have a sense of urgency and pressure when we are aware of the difference between China's commercial banks and international commercial banks,we should more clearly know own direction,accelerate the effective development and of banks. There is just one way to Cope with the coming fierce international competition throng system innovation and Improving the quality of cadres and staff.