Research On The Value Creation Ability Evaluate Of China's Commercial Banks Based On EVA

In recent years,with the continuous opening up of capital market and financial market,and the improvement of the financial system,the fierce competition and the continuous impact of financial products,as well as the impact of various channels such as the Internet,are greatly increased the business risk of commercial banks.The business philosophy of commercial banks have been changed,from the initial high capital scale to control the cost of risk and asset quality management.The business objectives are no longer the pursuit of profit maximization,but to maximize the value creation.Commercial banks have begun to gradually change their business model,improve asset effectively,improve their own mode of operation,increase their value creation ability,in order to obtain the potential of sustainable management,and to occupy a place in in the market.EVA as a new index of the enterprise performance evaluation,is rarely used in our business management,so the current EVA theoretical system is not yet mature and perfect.EVA index is more objective than the traditional traditional income indicators to reflect the value of commercial banks,to create the ability of commercial banks can be truly reflected through the EVA indicators.Therefore,it is very meaningful and urgent to establish the EVA theoretical for the commercial banks in China.EVA index has a very important theoretical value and practical value for the evaluation of commercial banks to make value of the assessment.It is greatly significant to improve the overall reform of financial market and improve the management mode of commercial banks.And also it can guide investors to make more scientific investment decision,improve the overall allocation of social funds efficiency,promote the sustainable development of China's market economy potential and power.This paper firstly elaborated exposition the value creation of commercial banks,discusses the basis,advantages and limitations of EVA,and analysis the general methods of traditional value evaluation used by commercial banks,then builds the EVA evaluation indicators to reflect the value creation ability of commercial banks,according to the actual operation of commercial banks.Finally,the author analyzes the EVA and REVA indexes of 16 commercial banks in 2004.Respectively,it select ICBC,CCB,CITIC Bank,Nanjing Bank as a key research object,which have the highest EVA and REVA respectively,and use these four banks' 2008-2014 data for further comparative analysis.Through the data analysis,it can be clearly seen that the commercial EVA indicators and REVA indicators of the calculation results are quite different.From the financial data analysis,this is mainly due to the two indicators in the calculation of the emphasis on different data.Thus,if you want a scientific and rational reflection of a commercial bank's value creation and evaluation of its business level,you can not only rely on EVA,should use both EVA and REVA.Sometimes the EVA of a bank is increasing,indicating that its value creation is growing annually,but this does not mean that the bank is doing well,because maybe that its REVA is declining,that means the value creation of unit capital is declining,so the business needs to improve.