Study Of Performance Appraisal Index System For The Transition Of City Commercial Bank

In our country, in the context that the transformation and restructuring of economicdevelopment mode keeps advancing, interest rate marketization is continuously deepened, andsupervision over the banking industry accelerates its access to international standards and tendsto be stricter, the development and transformation have become the common subjects faced byour country’s banking industry. Local financial institutions—city commercial banks whichoriginate from urban credit cooperatives must determine transformation strategy and choosetransformation route on the basis of their own conditions to avoid being trapped inhomogenization.Performance appraisal is a significant instrument for the development and transformation ofcity commercial banks and the foundation of effective operation of incentive and restraintmechanism. As the financial system reform is deepened and competition in the same industryintensifies, city commercial banks have actively started the exploration of establishing ascientific, effective, mature and normative performance appraisal system. In the meantime, theyhave begun to lay stress on the comprehensive evaluation of profitability, status of assets risksand abilities of expanding their business. However, there are still many problems in the presentperformance appraisal for city commercial banks. For those urban commercial banks intransitional period, situations become worse. For example, the index system is unreasonable, theindex decomposition is not specified enough and the practice of appraisal methods and appraisalresults are not scientific. Therefore, the restructuring of performance appraisal system for ourcountry’s city commercial banks in transitional period is urgently needed. This article is mainlyfor the restructuring of performance appraisal system which is applied by the head office (orbranches) to subbranches. It mainly studies a number of factors that have significant influence onthe development and system transformation of city commercial banks.This article consists of seven parts. The first part is introduction which elaborates thebackground and significance, research idea and methods of the selected subject. The second partis the relevant literature review of performance appraisal. The third part is the analysis anddesign of city commercial bank performance appraisal system. It mainly expounds the existingproblems in city commercial bank performance appraisal index system, including commonissues of state-owned banks and issues specific to city commercial banks. It also sets forth thedesign concept of city commercial bank’s performance appraisal index system on the basis of theabove problems. The fourth part is the performance appraisal design adaptive to the city commercial bank transformation. This chapter elaborates the strategy of the systemtransformation and development of city commercial banks, the relationship between theperformance appraisal and the business transformation and development strategy of citycommercial banks. Finally, it arrives at the main point of changes of city commercial bank’sperformance appraisal system in transitional period. The fifth part takes Shijiazhuang branch of abank in Hebei as an example, and detailedly elaborates the design of city commercial bank’sperformance appraisal system in transitional period. The sixth part analysis the results under thenew system；The seventh part carries out an analysis to the merits of newly designedperformance appraisal system.