Research On The Impact Of Performance Appraisal On The Effect Of Credit Risk Control

From the perspective of the development process of domestic and foreign commercial banks,credit risk management and control has always been the core content of commercial banks' operation and development,and also an effective support for commercial banks to enhance the ability of credit business development.Under the current situation of China's economic transformation and upgrading and slowing down of economic development,the macro-environmental pressure on credit risk management of commercial banks is more prominent.In the process of increasing pressure on credit risk management,it is particularly important to explore diversified credit risk control paths.The effect of credit risk control is not only constrained by the macro-environment of economic development,but also affected by the degree of shaping the micro-environment of individual banks,such as the construction of relevant banking systems and the active role of bankers.It is an important path choice for modern commercial banks to improve credit risk control mechanism and resolve non-systemic risks by exploring the impact of performance appraisal on credit risk control effect,giving full play to the incentive and restraint role of performance appraisal on bank employees,and achieving the effect of improving credit wind control ability.Through case analysis,taking A village bank in Inner Mongolia as an example,this paper introduces the general situation of the case,the construction of performance appraisal and the degree of risk management,selects specific performance appraisal indicators and loan-related data of the case,and studies the impact of the selection of different performance appraisal indicators and weight design on the effect of credit risk control in the case.The application of specific methods is to analyze the impact of the increase of specific performance appraisal indicators,the change of index weight and the refinement of indicators on loan overdue rate,non-performing loan rate,interest arrears rate,new loan overdue rate in the quarter,loan overdue rate within a certain jurisdiction and the occurrence times of credit operation risk.Only if the weight of performance appraisal indicators is set within a reasonable range,can it play a positive role in promoting credit risk control.If the weight changes beyond a certain range,even if it can promote the growth of loan scale and business volume,it can't play an effective role in credit risk control,but may lead to increased the consequences of degree for risk.At the same time,effective and targeted selection of performance appraisal indicators also plays an important role in risk control.Based on the results of study,some suggestions are put forward for commercial banks.In the process of constructing the credit risk control system,commercial banks should strengthen and improve the performance appraisal mechanism which is compatible with the actual situation of its development and enhance the active role of employees;commercial banks should also attach importance to the relevant practice of quantifying credit risk and establish a practical credit risk measurement model;commercial banks should also pay attention to and prevent the industry credit risk,and pay attention to the operation status of high-risk industries in the macro environment and the credit planning of banks themselves.