Research On Performance Evaluation Method Of China’s City Commercial Banks

With the rapid economic development of China, the city commercial banks havesprung up, and the scale is increasingly getting large. Meanwhile, the reform of thefinancial system also continues to accelerate. To meet the demands of economicdevelopment in the fierce market competition, and to improve the corecompetitiveness as well as to become modern city commercial bank, the citycommercial bank need to constantly enhance its overall performance and operationalcapability. Hence, China’s city commercial banks shall establish a scientific andeffective performance evaluation system which can promote the effectiveimplementation of the strategic vision and achieve their sustainable development.Balanced Scorecard as an emerging strategic management tool plays the corporatestrategy on the core of the company’s management process, a profound description ofa concrete manifestation of the strategy at all levels in the company. Second,traditional financial statements may convey outdated indicators. So BalancedScorecard is to overcome the shortcomings of traditional simple assessment offinancial indicators, setting other non-financial indicators, which can communicatethe strategic focus and the direction to the company. Onlying by improving theperformance evaluation, can we adapt to the competitive environment, and maximizethe value of shareholders’ equity.This paper is based on the principle of the Balanced Score Card （BSC）assessment of banks to evaluate the level of performance. First, we review thetraditional performance evaluation methods. Second, we analyze the performancedevelopment status and existing problems of Zhengzhou bank. Third, from theaspects of financial, customer, internal process, learning and growth. By the guidanceof the business strategy, we can set indicators and grading indicators, and then assessthe value and adjust it, so that the banks adjust the strategies and optimize measuresin time as well as improve the staffs’ enthusiasm and initiative, thus enhance thebanks’ core competitiveness.Establishing a conducive to the bank strategic long-term development of performance management evaluation system is the need for development of banks inthe increasingly fierce competition. How to make good use of the Balance Scorecardin the operation and management of the bank’s process, there is a certain degree ofdifficulty, this is a gradual process, and it needs to be inspected and corrected inpractice.