Commercial Bank Business Performance Evaluation

With the Chinese commercial banks open to foreign banks and the changing external economic environment, Chinese commercial banks are facing increasing competition. Banks are important financial companies, and its operating conditions related to economic order of our country, related to the interests of creditors, related to shareholder returns, related to outside investors making investment decisions. Therefore, the article has theoretical and practical significance.Firstly, this paper discuss the significance of topics, define related concepts and have a literature review. Proposed principal-agent theory, stakeholder theory, the enterprise value maximization theory and strategic management theory are supporting theory. Secondly, the review and evaluation of the development process of commercial banks. This paper introduce the latest evaluation method by Ministry of Finance which is financial state-owned and state holding enterprises performance evaluation interim method and point out its deficiencies. Followed by the construction of the performance evaluation system is aimed at the improvement of these deficiencies. Thirdly, this paper introduce the performance evaluation of three periods about the developed countries:the cost of performance evaluation period, the financial results of the evaluation period, balanced evaluation period. The different evaluation period focus on the different evaluation indexs. This paper select three methods:Camel scores and Standard & Poor's Evaluation and the Balanced Scorecard method, which choice various indexs respectively. Performance evaluation methods are subjective weighting method and the objective weighting method, the article describes the advantages and disadvantages of various evaluation methods. Fourthly, based on the Balanced Scorecard, for the financial indicators, from the profitability, liquidity, safety and growth into consideration select eleven indexs; for non-financial indicators, from the customer, internal business management, learning and growing three aspects into consideration, altogether are nine indexs. For the weighting indicators, on base of compare, analytic hierarchy process and entropy combination weighting method have been used. According to our country's 16 listed banks in 2009 data are calculated, arrived at the weight of each index. Finally, this paper points out operating recommendations about Chinese commercial banks.Article seeks to make progress in the following points:first, relying on accounting income solely have its deficiencies, this paper introduced EVA return index. Second, the introduction of non-financial indicators. Third, choose the appropriate weights method, we can acquire more realistic and more informative conclusions according to combination weighting method.