Study On Improving WH Bank EVA Performance Evaluation System S

As the core of modern economy, China’s commercial banks take the initiative to adapt the request of market economy, adjust business concepts and strategies, and find the best develop strategies and paths through20years’reform and innovation. They make efforts to evolve from extensive development mode to intensive and scientific development approach. Recently, China’s commercial banks are faced with keen competitions from other banks and slumping global economy. They must enhance their operating performance. Only in this way, can they exist and develop. Hence, it plays an important role for building a scientific and reasonable performance evaluation system to increase banks’performance and value. EVA is widely acknowledged and used by most of the western commercial banks as a performance evaluation tool. EVA has considered the capital cost of stockholders, and then it helps to unify the maximization the vale of stockholders and banks.The purpose of the study is to analyze the current situation of WH bank’s performance evaluation system, discover its practical problems and make suggestions to improve and guarantee the existing EVA performance evaluation system. It is conducive to make the performance evaluation system more reasonable and scientific. At the meantime, it can be a reference for other banks’performance evaluation system. This essay uses case study method and field investigation. The author interviewed the employees from the Jinan and Qingdao branches of WH bank to understand the comprehension of employees about the EVA performance evaluation system. This makes preparations for finding problems and making improvement.This paper, firstly, explains the study background, meaning, train of thought and innovations. Then it introduces foreign and domestic studies about EVA:The foreign studies are mature in theory and practice. However, the essays of analyzing China’s commercial banks’EVA performance evaluation system by using cases are insufficient. The paper elaborates relevant theories to lay solid foundations for improving WH bank’s EVA performance evaluation system. The last part is the key point which analyzes improvement of WH bank’s EVA performance evaluation system. In this part, it introduces the current situation of WH bank’s EVA performance evaluation system form branches, departments and employees. On the basis, it discovers four existing problems that need to be solved immediately. At last, it makes suggestions to better the WH bank’s EVA performance evaluation system.The innovation and contribution of the thesis are as below:Firstly, it betters WH bank’s EVA performance evaluation system from branches, departments and employees. And designs a complete implementation plans. This is also a reference for other banks’performance evaluation system. Secondly, it applies EVA profitability per capital into performance evaluation to compare different branches and departments.As a fresh graduate who will work in a commercial bank, the author completed this essay hoping to help China’s commercial banks to build better EVA performance evaluation system, increase banks’value and core competitiveness. Welcome comments and corrections.