Research On Performance Management Of P Bank NJ Branch Based On EVA

In the face of the interest rate market and interbank competition,commercial banks in order to achieve the strategic development goals,need to fine management urgently,especially the continuous optimization of the performance management,improve the rate of return on capital,enhance the comprehensive competitiveness,realize the maximization of bank risk and profit under the constraint of enterprise value.The traditional performance evaluation methods of commercial banks are facing severe test,and need to introduce new performance evaluation methods in line with the current economic environment.Economic Value Added(EVA),1982 by Stern Stewart Company put forward the core conception:an enterprise only in its capital gains for the return of all costs over the capital,can bring value to shareholders.At present,the performance management method based on EVA value management mode has been applied in most multinational commercial banks,and it has become a new standard of modern enterprise management.This paper is based on the actual situation of the domestic large-scale joint-stock commercial bank-P bank N branch,analyze the current situation of performance management in P bank N branch,apply with the theory and method of value management based on EVA,analyze the problems and the reasons for the current situation of performance management by means of questionnaire survey and field interview.The four main problems include the performance indicators are more one-sided,the coordination of the management system is insufficient,the incentive system effect is not good and the idea system needs to be improved.Performance indicators are more one-sided because of the economic benefits and market share growth is difficult to unify,regional economic and regional differences in resources,and performance evaluation of the lack of non-financial indicators.The reason for the lack of coordination in the management system is that the information construction starts late,the performance management responsibility is unknown,and the performance communication is short of cooperation.The reason for the poor effect of the incentive system is the lack of open and transparent EVA incentive mechanism,the lack of the constraints of the senior management mechanism,and the lack of focus on the development of business oriented incentives.The reason that the idea system needs to be improved is that the propaganda and training system needs to be strengthened.According to the reasons of the above problems,this paper puts forward four improvement measures and two main points of improvement.The 1st measure is to continuously optimize EVA performance objectives.The 2nd measure is to improve the EVA management system.The 3rd measure is to actively promote the EVA incentive system.The 4th measure is to establish a comprehensive EVA concept system.The two main points of improvement,the one is a drop of EVA occupancy rate of capital,optimize the credit asset structure and operating profit income structure;the two is the development of EVA high return business,mainly involving the use of low economic capital assets and liabilities of the business.I hope EVA performance management improvement strategies are put forward in the future to promote the implementation of the P bank NJ branch performance management,and constantly improve in practice,the value concept of economic value added to truly become the guide to action management activity of P bank NJ branch,from the passive assessment EVA change to employees take the initiative to think about upgrading EVA,to guide commercial banks pay more attention to the efficiency in the use of capital,achieve the ultimate goal of maximizing economic benefits and doubling the EVA.