The Application Of EVA On The Performance Evaluation In CEB

In order to adopt the EVA(Economic Value Added)，built the evaluate systemwhich centering on the EVA, a number of commercial banks, in china, had made a lotof reformation attempts on the system and methods of administration, on thepersonnel mechanism and performance appraisal, and on excitation mechanism. It’sworth seriously researching whether the attempt of innovation in management iseffective，and the commercial bank how to use the EVA to improve their internaladministrative control.This paper selects the Qing Dao branch of China Everbright Bank as the researchsample, then mainly selects the method of comparative analysis to investigate how theCEB(China Everbright Bank) use the EVA system to evaluate the performance ofitself, and the differences between the Qing Dao branch executes the EVA to value itsperformance and has not yet.This paper mainly divides into five portions. The first part includes theinstruction of research background and the question, the second part includesliteratures review and the basic theory of this study, the3rd part includes theresearching thought and the descriptions of the cases, the4th part includes theanalysis of the cases and discussions, this part is the hardcore of this paper. The5thpart is the conclusions and the suggestion. The author found that the effect is goodthrough on-the-spot investigation. Because the CEB all things considerate theelements which can be influenced by the profit of productions, the level of risks, costcontrolling and capital occupying in the performance valued system. This articlemakes a analysis of the elements which can influence the EVA in the operatingprocedure with the method of taking the data from the actual operating of Qing Daobranch as the base, according to the theory of EVA, the performance regulationevaluation of CEB. And then provide the relevant financial strategies and improvingmethods. CEB developed the concept of FTP, which supported by the advanced itsystems. Then the operational establishments can calculate the profit of capital, debtand the off-balance sheet products. They can measure the risks of the Table inside andoutside the business by using the risk assets management system which make pricingpossible to match with the risk rationally. The Qing Dao branch of CEB improved thecapacity of profitability in successive years by the effectively promote of EVA.The conclusions are got from the case study in this paper as following:1. EVA, as the evaluation index, corrected the concept of traditional assets. Therequirements of the shareholders are acknowledged specifically. The Qing Daobranch improved its market competitiveness by accomplishing the unity of themanagement goal which come from different apartment by means of which executingthe evaluating system on the basis of EVA.2. The suggestions for CEB how to improve the EVA. This paper authors thesuggestions how to rise the EVA by means of which increasing profit, decreasing thecost of capital and devote major efforts to developing the intermediate business, etc...