Research On Performance Evaluation Of ABC Bank

With the thorough implementation of the reform and opening-up strategy and the western development strategy, development financing institutions in China, represented by Agriculture Bank of China (ABC), have established in the1990s. They play an important role in supporting the national development strategies, making up short-term behavior in the financial markets by long-term credit structure, and maintaining the country’s financial stability. In the period of two decades of development and growth, development financing institutions experienced lack of credit in value markets, poor awareness of risk countermeasure, single business scope, low capacity of sustainable development and the serious situation of non-performing assets, but with continuous reform of the financial system, development financing institutions have already been a main market entity. With China entering the WTO, banks in China have faced greater challenges of the market and the competition within the banking industry. It is necessary to improve their management level, enhance the core competitiveness, grasp the ever-changing market information and establish the sense of competition for a bank to seek a stable development in the fierce competition. In such a changing era, development financing institutions, ABC as a representative, will also be faced with the dual challenges of both role definition of enterprises and performance appraising system transformation. And in the process of enhancing performance management and setting up a reasonable performance appraising system within ABC, the index of performance appraising is the core.Firstly, based on the existing research on performance and performance appraising system at home and abroad, this paper starts with the concepts of performance and development financing performance, and analyzes the establishment, implementation, process, index setting, and the merits and demerits of performance appraising system. Secondly, this paper introduces several basic concepts of development finance, analyzes the revolution of development finance study and the basic characteristics and operation mechanism of the development financing institutions, and explores the performance concept and performance appraising about the efficiency of development financing institutions at both macro and micro levels. Then, this paper takes the ABC as a case to analyze the evolution of the performance appraising system, the index types and the causes of the existing problems in different times. Finally, through combining the strategy-oriented performance management system, the Balanced Score Card theory, and the Economic Value Added theory, this paper formulates a way to help construct and improve the performance appraising system of the ABC. Then this paper discusses the obstacles may exist in the implementation of the performance appraising process as well as countermeasures, in order to provides a practical means to help the ABC to complete the strategic transformation, enhance the market competitiveness and performance management.