Research On Business Performance Assessment Based On Economic Capital Of Little Enterprise Financial Center Of ICBC B Branch To Its Secondary Branches

As the downward pressure on the economy, the implementation of marketization of interest rates and the development of financial disintermediation intensify the competition among banks, leading to the increased business risk, slowed down development and declined quality of credit asset. Under the new economic norm, commercial banks are required to speed up their business transformation, change their business development model, strengthen economic capital management, speed up product innovation, enhance market competitiveness, raise economic capital return rate and economic capital management level, and establish comprehensive risk management system, to accomplish a balance between risk and return, give up the model that rely mainly on scale expansion to achieve rapid growth.The research object of this paper is the marketing department small enterprise financial center of B branch of ICBC. In the past, the assessment system mainly focused on incremental loan assessment while ignoring the economic capital occupancy and risk-adjusted return on capital. Banks are facing economic downward pressure as increasing business risk and grim asset quality situation. As commercial banks, accelerating business development and improving profitability are very important. How to deal with the risk among business development process, and improve risk control capability, those are extremely important for maintaining the stable asset quality. Especially in the small business credit business, facing the economic downturn, small business performance shows decline both in sales revenue and profitability, weakness in anti risk ability, lack of competitive products, leading to decline in profitability, all which are the urgent problem to solve in the development of credit business of small enterprises in the problem.This paper consists of six parts. The first part is the introduction, which introduces the research background and significance, and summarizes the fruits which domestic and foreign scholars achieve on the performance assessment, while expresses the framework and the shortage of innovation of this paper. The second part elaborates the basic theory of performance assessment, at the same time introduces the commonly used methods of performance assessment and economic capital evaluation index.The third part introduces the development of ICBC and its small business financial center,following the analysis of small business financial center performance assessment situation,and point out the existing problems. In the fourth part, in accordance with the basic principles of the performance assessment design, this paper optimizes the performance assessment index,and establishes economic capital performance assessment system.The fifth part evaluates the implementation effect of the performance assessment program, and put forward suggestions for further improvement.The innovation of this paper exists in the transverse research on performance assessment of small business financial center as B Branch marketing department.Different from foreign scholars, who pay more attention to longitudinal research of subordinate institutions and staff performance assessment, while put less emphasis on the department performance assessment.It is possible to become an innovation that the research on performance assessment of small business financial center as B Branch marketing department in this paper.Via the introduction of economic capital evaluation index EVA and RAROC, this paper proposes the optimization of the performance assessment system, enhancing the guiding role which economic capital plays in the business transformation, optimizing customer credit structure, strengthening risk management, and promoting the sustained and healthy development of small business financial services.