A Study Of Commercial Bank Achievements Appraisal Based On EVA

After the market completely opening, the Chinese banking industry needs to face the bigger competition pressure. The government has taken a lot of measures such as peeling off non-performed loans, reforming state-own banks by injecting fund directly, and encouraging strategic investors to take stock of Chinese commercial banks to reduce their non-performed loans and advance their operation efficiency. How to evaluate the effects of these measures, how to promote the management level of domestic banks, and to build an international and more scientific, more precise Performance appraisal system is the key.This article first analyzes the source, the origin of EVA and the EVA Performance appraisal system, and then evaluates the ready-made research results from two different views of overseas and domestic. In this foundation, this article discusses the superiority and inferiority of EVA Performance appraisal system and the Possible effects when it is used in the appraisal of domestic commercial banks.Then, this article has made the comprehensive comparative analysis for traditional Performance appraisal system of commercial bank, it is essential for us to design a Performance appraisal system that can promote the management level and enhances Shareholder's value.In the last several dozens years, China commercial banks has attempted to use the many types of Performance appraisal systems, mainly including the single target appraisal and the multi-targets appraisal, financial achievements appraisal and non-financial achievements appraisal and so on. While the traditional achievements appraisal all exist problems to a certain degree, such as appraisal target be fuzzy, the appraisal result lag, the method is backward cause the result to distort, and lack with necessary Penalty and drive measure. These problems show the directions and the improvement goal of achievements appraisal system.Finally, this article has discussed the improvement of EVA achievements appraisal system in commercial banks. Under the principles of importance principle, operational principle, the cost–benefit principle, the compatibility principle, the forecast principle and so on, this article proposed overall measure and the concrete measure to carry out the EVA achievements appraisal system from the strategic management idea, the target computation method, the system-related construction, the advancement procedure and other different aspects, and stated the comparison between EVA formula and the fundamental formula in details, mainly including adjustment project of accountant profit and the capital cost computation and so on.In order to prove the scientific nature and operation of EVA achievements appraisal system thoroughly, this article took five listed commercial banks as samples for empirical study, contrast the results of EVA achievements appraisal with the results of the traditional achievements appraisal. Because enterprise's drive mechanism has the close tie with the achievements appraisal system, this article also studied the drive mechanism, and put forward some correlative suggestions.