Commercial Bank Performance Management System Based On The Added Value Of Economic Research

With over30years of reforming and continuing improvement of core competency, EVA (Economic Value Added) has become a core KPI in China banking system. Especially following the introducing of the Basel Capital Accord to the banking system, in recently-10years, EVA has been used to evaluate the performance of bank. With the rapid development of capital market in China domestic market, the EVA has been already established among the four major state-owned bank of ICBC, ABC, BOC and CCB, but it is developed slowly among municipal commercial bank. Therefore this thesis will choose the application study of EVA within the Bank of Jiangsu and analyze the case of municipal commercial bank in developed area, which will be meaningful to some extent.Based on the introduction of fundamentals of EVA which is the major topic of this paper and its application in commercial bank, the thesis is focused on the practicing and the achievements which EVA is implemented as a core KPI in Bank of Jiangsu and existing problems and solution have also been discussed. Following are the five chapters:Chapter one is the introduction. Following the background introduction of EVA to China commercial bank and the meaningful of choosing Bank of Jiangsu as a study target, the major literature both in domestic and abroad has been summarized with the methodology and thinking of the research been discussed.Chapter two is the principal fundamentals. The basic theory of EVA has been introduced with a comparing of advantage to traditional KPI. Due to the application difference of EVA between bank and other business, the two concept of EVA which is connected with commercial bank has been introduced and the evolution and application of EVA in commercial bank been talked.Chapter three is an analysis of practicing. How EVA established and applied in Bank of Jiangsu has been introduced and how EVA has been continued improving there with some actual cases been explained. Chapter four is a checking of the EVA effect. With a comparing of data variance between the EVA implemented before and after in Bank of Jiangsu and some survey of questionnaire from selected personnel, the effect and existing problems of EVA as a KPI was analyzed.Chapter five is a conclusion and suggestion. Targeting at the problems from questionnaire,some suggestion to perfect the EVA in Bank of Jiangsu has been given out, which is also a goal of this thesis.