The EVA Appraisal System Optimization Under A Full FTP Mode In A Sub-branch Of A Commercial Bank

As a company with the purpose of making profits, commercial bankgain its profit with his main business such as deposit, loans, andsettlements, foreign exchange etc. For increasing its competitiveness, Ourcommercial banks continue to try to improve performance management.EVA(Economic Value Added), means the remaining profits afterdeducting the investment capital cost. a company’s benefit must be morethan the hole cost of invested capital, then it can take profit forshareholders. At present, based on the EVA performance evaluationmethod has been used in most of the commercial bank.FTP(Funds Transfer Pricing), means the head office as a cash poormanagement center, and the branch as an independent accounting unit.All the deposit of the branches centralize to the head office and all theloans of the branches dismantle from the head office.We improve the performance appraisal methods with EVA and FTP,to increasing our commercial bank’s competitiveness.