Research On The Performance Appraisal Of X Bank From The View Of Economical Capital Management

Unlike production enterprises, commercial banks are enterprises rely on business risk to gain, and its pursuit of profit objective premise is liquidity and safety be guaranteed. Therefore, in evaluating the performance of commercial banks must be to fully consider the risk factors. The losses faced by commercial banks in the business of the general for the expected loss and unexpected loss and expected loss through the provision for loss reserves to cover, unexpected losses, occupied by correspondingly the amount of economic capital to cover. Therefore, how to balance the relationship between the commercial bank risks and benefits, effectively solve the matching problem between the two, by introducing the concept of economic capital management, the establishment of performance appraisal method based on economic capital management, give full play to the economic capital to resist risks and create value. Performance appraisal method based on economic capital management is through the scientific method of risk measurement and rules, the more accurate calculation of the size of unexpected losses of the commercial banks in different business correspondence, thus matching the corresponding economic capital, its purpose is not to eliminate risk, risk averse, but the science of risk measurement, obtained the risk adjusted profits, commercial banks the level of real income, to guide commercial banks in their daily management activities, reduce the economic capital occupied, light business development. Economic capital as a main factor of scientific performance appraisal. Therefore commercial banks in performance appraisal, whether it is the external shareholders on commercial bank performance appraisal, or inside the commercial bank or group of each branch line of the products and the performance appraisal, in addition to consider how much revenue, but also to consider these gains how much to pay the price, take big risks.The purpose of this paper is from the economic capital management perspective of X commercial bank performance appraisal, essence, commercial bank is a financial enterprise, and other production enterprises business target, obtain the operation profit, but and general corporate, commercial bank has a its own business characteristics, to retail customers and wholesale enterprise customers as an object, with deposits and loans as the main mode of operation and the special capital structure, decided to commercial banks to pursue profit objective premise is effectively guarantee the liquidity and safety.Therefore, the economic capital management introduced to evaluate the performance of the commercial banks and its necessity is economic capital itself has the risk sensitivity characteristics, through scientific risk measurement and capital constraints, the business activities of the benefits and risks to match, give full consideration to the performance appraisal of risk factors, in order to establish RAROC and EVA index as the core of performance appraisal system. The RAROC and EVA two performance appraisal index has conducted the thorough research, for both in the performance appraisal methods of comparative analysis, these two indicators can reflect commercial banks in business development and gains bear the risk, build the risk and return matching theory of performance appraisal system.This paper analyzes the current situation of X bank performance appraisal and the insufficiency, and X bank's current application status of economic capital management, put forward the appraisal index of RAROC and EVA introduced the Balanced Scorecard performance appraisal method, and puts forward the economic capital measurement method not only applied to the performance appraisal of branches, but also applied to the line level, department level, product level, employee performance appraisal, through the performance appraisal system of economic capital management method, the risk return concept popular, scientific performance appraisal is used to guide the X bank more reasonable use of limited economic capital, capital constraints meet the regulatory requirements of the regulatory agencies, to develop low capital consumption adjustment business. The business structure, reduce capital occupation, improve the economic profit of commercial bank.