Analysis On Issues Related To The Performance Evaluation System Of Commercial Bank Branches

Going abroad to take part in world competition is the only way forChina’s banking sector. As one of the effective means to enhance thecompetitiveness of domestic banks, the performance evaluation system is animportant, practical and urgent issue.Combining the author’s working experience and MPAcc theoreticalknowledge， the bank branch performance evaluation system has beenchosen for the study. By reviewing an overview of the performanceevaluation concept, function and theoretical development， the mainproblems that not suitable for the performance evaluation system of “ABank” have been pointed out. Also the optimized reconstruction program forthe example of “A Bank” has been proposed in this article.The positive improvements of the optimized reconstruction programhave been analyzed. Designing process and key points of the bankperformance evaluation system have been summed up as follows: First, thestrategic management and evaluation system should be built identity-oriented,such as using the "balanced scorecard" to achieve long-term goals andstrategy. Second, the key factors of "safety, liquidity and profitability" for theperformance evaluation system should be balanced, fully reflecting and influenced by the principles of "arrangement and logic in parallel, both fairand reasonable". Third, value-based performance evaluation methods shouldbe recommended and promoted, such as the EVA assessment method. Fourth,the indicator system should be dynamically adjusted to enhance theadaptability and flexibility to the environment.The main character of this article is in close connection with thecompetitive situation and business environment of the commercial banks inChina. By analyzing one example of domestic banks, key methods and ideasto construct the evaluation system have been summarized. This article alsoprovided useful information and references for the research work of domesticbanking system.