Research On The Performance Evaluation Of City Commercial Bank Based On EVA

At present, China’s city commercial banks are facing the opportunities and challenges as well. On the one hand, in recent years, city commercial banks got rapid development and break regional restrictions. On the other hand, the city commercial banks are also faced with enormous challenges. The state-owned commercial banks are grabbing the market share originally belong to city commercial banks. The financial impact of the Internet has also caused a great impact on the city commercial bank. Although the city commercial banks perform well in the operating profit margin, return on assets and other traditional indicators. However, whether they really achieve the purpose of increasing the value of the enterprise, the traditional performance evaluation system of commercial banks cannot give a clear answer. Building a scientific and reasonable performance evaluation system, measuring the operating performance is of great importance. Foreign banks generally adopt EVA economic value added as a performance evaluation index; in China, the state-owned commercial banks have also started to use the EVA. The performance evaluation system based on EVA can improve and complement the traditional performance evaluation system.In this paper, firstly, discussing the theory of EVA, including the definition of EVA, the basic theory, the basic accounting equation and the accounting adjustment. Comparing the traditional performance evaluation methods with EVA analyses their advantages and disadvantages. Combined with the specific circumstances of city commercial banks, construct the performance evaluation system of EVA.This paper selects the Bank of Beijing as an example of EVA application in performance evaluation of city commercial banks. According to the performance evaluation model of urban commercial banks, select the accounting data of 2009-2013. Calculating the EVA and REVA, and compared with the traditional performance evaluation index. Analyses the operating performance and value growth in recent years. Through the EVA and REVA of other listed city commercial banks and state-owned commercial banks, analyses the general situation of the development of city commercial banks. Finally, combined with the actual situation, puts forward some suggestions for development.