Research EVA-based Performance Management System Of Commercial Banks

Commercial Bank is a major pillar of China's financial system, and plays a particularly important role in the development of the national economy. With China's accession to the WTO, domestic commercial banks will more thoroughly go into the world financial markets, and participate in international competition with the banking sector. How to absorb the West advanced research results and practical experience in a creative way, to breathe the modern concept of performance management, technology and methods into Chinese mainland, to resolve confusion and technical difficulties of the current performance management in China's commercial banks. Economic Value Added (EVA) was come up by the United States Stern Stewart's company, and it is a performance evaluation and management system based on market value of the enterprises. EVA has been successfully applied by many large enterprises abroad. In our country, some companies try to apply EVA to business performance management, but the overall situation in China is still in its infancy. Therefore, through the performance management theory of commercial banks and analysis of EVA targets, as well as to draw lessons from performance management research and practice of domestic and foreign commercial banks, and coalescent the actual situation of China's commercial banks, to establish a performance management system of commercial banks. So that China's commercial banks get an invincible position in the new era of competition and the development process.On the basis of the instance analysis, theoretical analysis, qualitative analysis and quantitative analysis, supplementing the literature research, exploratory research, the experience summed up, descriptive study and other methods, to explore the EVA-based commercial bank Performance management system in four parts. The first part is about the aims and significance of the performance management of commercial banks, summary of EVA applied to domestic and foreign commercial banks, as well as research content and methods. The second part discusses the performance management theory and methods of the commercial banks. There are agent theory, systems theory, theory of management by objectives and incentive theory; 360-degree performance appraisal method, EVA, balanced scorecard and key performance indicators; the finally analyze the performance management features and status of the commercial banks. The third part design the Performance Management System of Commercial Bank based on EVA, including the main construction ideas, performance goals system, performance appraisal systems, performance processes and performance incentive system. The main part of the fourth is analysis of the case about EVA applied to the performance management of commercial banks.Both domestic and foreign research shows that EVA targets also is applied to the performance evaluation of commercial banks, but effective integration with EVA and performance management has not been an in-depth study. This thesis carried out on this point, in conjunction with the design performance indicators KPI and contract management, to establish the EVA-based performance management system of commercial banks, for commercial banks in China being a modern financial system and providing useful lessons of experience to improve the performance of the banking industry.