Effects Of Banking Performance Evaluation Mechanism For Financial Stability

The bank performance management rules reflect the direction and pattern of distribution of interests,it is the direct embodiment of the outcome of the game. With the gradual implementation of Basel Ⅲ, our banks will face more strictly regulatory,and the corporate governance structure、the level of risk management、personnel’ stechnical level will also face greater challenge. To maintain consistency between the behavior of financial institutions and the stability of the whole financial system and social interests,the central bank must strengthen the monitoring and management of the bank, increase the assessment of the bank’s governance structure、performance appraisal management system and the internal risk control system, optimize the financial market rules.This paper summarized the financial management and performance appraisal theory and the relevant research literature, and expounds the importance and necessity of the central bank to maintain financial stability and to carry out monitoring and evaluation, Overviewed the bank performance appraisal mechanism and evolution, analysis the impact of Basel III on the bank management, and study on the influencing mechanism of performance appraisal on financial stability. On the basis of this, based on the current situation of China’s economic and financial system, through the practice of evaluation of special performance evaluation of Y bank, analysis its defects in the performance evaluation mechanism, conclude it and put forward relevant policy suggestions.