The Performance Appraisal Of Commercial Banks Based On The EVA Under The Financial Reform

With the completion of the joint-stock system reform of China Commercial Banks,governance structure is becoming more and more perfect, the target of commercial banks gradually changed from "profit maximization" for "shareholder value maximization",commercial banks traditional performance appraisal methods are exposed that these methods can not reflect the defects of shareholder value. In recent years, EVA(Economic Value Added) began to appear in the research on the performance appraisal of commercial banks. EVA is the surplus value of enterprise business tax net profit minus equity and debt investment cost of capital(including opportunity costs), the core concept of EVA is capital investment income obtained only in the enterprise profit is higher than the cost of equity capital and debt capital cost to shareholder value creation. Compared to the traditional method of performance appraisal of commercial banks, EVA can be more comprehensive and accurate measure of the value of shareholder wealth. Therefore, EVA is widely used in the performance appraisal of commercial banks.Since the beginning of 2013, China’s financial reform began to speed up, the marketization of interest rates, deposit insurance fund system, asset securitization, private banks and other reform measures in the financial industry influences commercial banks.Financial reform caused our country capital market competition, but also bring challenges and opportunities for the management and development of commercial banks. In this situation, commercial banks need adjusted from the inside to the outside, to guard against financial risks, to resolve the competition challenges, and seize the opportunity to develop itself. Therefore, the performance appraisal of commercial banks should also make corresponding adjustments, influence of financial reform of commercial banks and the index are analyzed. Through adjustment and amendment to reflect the profitability of commercial banks, improve the ability of commercial banks to deal with the financial reform.EVA performance appraisal method of the theoretical foundation and domestic and foreign research status is introduced in this paper, for the traditional performance appraisal methods were summarized, and pointed out the shortcomings of the traditional method ofperformance appraisal, and points out that the EVA to evaluate the performance of the commercial banks. After to the process of China’s financial reform to sort out and analyze China’s financial reform measures and EVA of commercial banks and for financial reform of commercial banks operating characteristics, the index of EVA to accounting adjustments and amendments. After correction formula is obtained, with XY Bank of our country actual data 2010-2014 as samples, calculate EVA, REVA, such as EVA per share index value, and according to the results of different years comparative analysis, EVA and traditional performance appraisal index of ratio analysis and XY Bank EVA index and industry other banks EVA index of comparative analysis. The results show that, after adjustment and revision of EVA can reflect the real commercial banks performance level. Finally, the limitations of the current EVA application are summarized, and the EVA performance appraisal methods in the financial reform environment in China’s commercial banks to promote and improve the relevant recommendations.