Study Of Performance Evaluation System Of Commercial Bank Based On Banlanced Score Card

Finance is the core of modern economy. With the promotion of economic globalization and financial liberalization, as well as commitments promised to WTO, the domestic and international financial markets turn to be connected closely. Commercials banks'managers must take measures to improve their management skill and service quantity to deal with increasing risks and adapt to the modern business environment, because there is still a huge gap compared with those international advanced banks. In this case, according to the requests of modern finance enterprise management, commercials banks need to establish an objective, scientific and comprehensive performance evaluation system, in order to keep vitality and prevent external competition.In order to evaluate the commercial banks, this paper has designed a system, which contains an indicator system and a set of specific quantitative criteria, through the research of traditional relative theories and models. Based on an analysis of the present performance evaluation system about domestic commercial banks, and pay attention to the historical processes which describe the evolution of traditional foreign performance evaluation models, the author pointed out:domestic commercial banks always have a common problem that the current performance evaluation of commercial banks is irrelevant to banks' strategic goals, so it is invalid; use single traditional financial factors is not enough, the evaluation system must include a certain proportion of non-financial indicators. Based on the research of Balanced Score Card (BSC), this paper has established the evaluation indicator system to four relatively independent dimensions:financial, customer, internal business processes, learning and growth. After it, the author use the Analytical Hierarchy Process (AHP) model to analyze the distribution of single indicator to the system; and then, it gets a clear list of every indicator's weight. At the end of the paper, there is a practical application of the BSC focus on bank A.