Research On Performance Evaluation Of Bank Of China Branch C Based On Balanced Scorecard

With the deepening of China’s market-oriented reform of interest rates and the rapid development of Internet finance,the uncertain factors affecting the business environment of commercial banks have become increasingly complex.On the one hand,the supervision and punishment are becoming stricter,and non-financial requirements such as consumer protection,service optimization and complaint handling further affect the daily management of banks,The traditional performance evaluation scheme based on a single financial indicator gradually fails to meet the needs of the owners and operators of commercial banks to strengthen modern governance.As a subsidiary of the sub-branch,the branch has formed a principal-agent relationship with the sub-branch.The branch has no operational guidance responsibility for the sub-branch,but also has management responsibilities for its business compliance,cultural construction,customer maintenance,etc,However,the evaluation scheme based on financial performance is not a reference for the overall management,and the sub-branch staff also have requirements for the flexibility of performance evaluation beyond the financial indicators.On the other hand,the impact is reflected in the increasingly fierce product expansion,customer stickiness and financial talent competition in the banking industry.The major banks have also increased the emphasis on customers,compliance and optimization of governance structure in their development strategies.The performance evaluation method that branches used to focus on financial performance evaluation for their subordinate branches can no longer meet the further requirements of the head office strategy.Therefore,how to introduce non-financial indicators in a scientific and balanced way,build an evaluation index system that conforms to the development strategy of commercial banks,and effectively guide the performance evaluation of branches and branches with scientific and reasonable systematic programs,effectively complete strategic objectives,reduce agency costs,and set up internal control "early warning wall" to timely feedback compliance and staff management issues,It has become an important frontier research and practical issue in the field of performance evaluation of commercial banks.This study uses the balanced scorecard theory,combined with the organizational characteristics of the prefecture-level branches of the Bank of China and the achievements in the field of commercial bank performance evaluation in the literature review,to analyze the existing problems of the performance evaluation of Branch C as follows: the low adaptability of the indicators to the branch strategy leads to the lack of goal guidance,the complex indicators and loose structure lead to the low level of understanding of employees,the single evaluation method leads to the low degree of recognition of the results The lack of a separate risk internal control module leads to a weak compliance awareness.After combining the four-dimensional strategic objectives collated by the balanced scorecard,starting from the perspective of various factors affecting bank performance integrated by the literature review,the performance evaluation indicators of the sub-branches under the jurisdiction are initially selected according to the principles of strong strategic relevance,high practicality,and the combination of generality and individuality.Then,through the Delphi method,after the experts reached an agreement,19 indicators were finally selected to build the performance evaluation framework of Branch C,and the analytic hierarchy process was used to obtain the importance opinions of each indicator in the questionnaire,and then the weight of the dimension layer and the indicator layer was calculated hierarchically,and the balanced scorecard of the performance evaluation of Branch C was finally determined.Using the actual data of the sample banks for model training and comprehensive evaluation,the results confirmed that the evaluation system built by the balanced scorecard can organically link the long-term goals and short-term actions of Branch C,and drive the implementation of strategic goals that were not found under the original performance evaluation of the modern inbound branch through the causal logic between the evaluation results and the four dimensions,and pointed out that the inbound branch in the product expansion and customer infrastructure The perspective of staff cohesion improvement needs to be improved.Based on the comparison results and strategies,combined with the actual development of Branch C,the case bank further proposed that it should pay attention to the implementation of the strategic orientation of full-dimensional performance evaluation,the orderly implementation of performance evaluation with scientific theory,and the strengthening of communication to improve the effectiveness of performance evaluation implementation.The main conclusions of the overall study are as follows: First,the introduction of the balanced scorecard theory to achieve the purpose of full-dimensional performance evaluation and strategy-oriented performance evaluation of commercial banks is feasible and effective,which is conducive to the implementation of the strategy and the overall orientation.Second,through the screening of indicators,it is found that "non-interest income" in the financial dimension,"share of the four largest banks of deposits per day" in the customer dimension,"share of the four largest banks of loans per day" in the internal business process dimension,"business error rate" in the learning and growth dimension,"proportion of external certificates of employees" and other indicators have been eliminated,reflecting that under the new development structure,some of the original indicators have been eliminated due to the "fee reduction and interest transfer" policy The dogma of data reflection has no longer attracted the attention of the management of Branch C.Third,the weights determined by the analytic hierarchy process found that the absolute weights in the indicator layer accounted for the highest proportion of "economic value added" and "customer net growth rate",reflecting that the highest concern of Branch C to the sub-branch was the overall business contribution and customer market expansion ability.Fourth,through the fuzzy comprehensive evaluation,it was found that the financial dimension of the sub-branch was the best,followed by the learning and growth dimension and the internal business process dimension,with the best performance,while the customer dimension was the worst.The substitute sub-branch needs to be improved in the customer dimension,and there is still room for improvement in learning and growth,and internal business processes.However,the original performance evaluation scheme of Branch C did not reflect the above situation.The performance evaluation scheme based on the balanced scorecard has focused on and demonstrated the problems,which can provide suggestions for Branch C to strengthen its management of its subordinate sub-branches.The application value of this paper lies in: on the one hand,it provides information reference for case bank executives to better understand the current operation and management situation and staff performance;On the other hand,it provides reference for the application of balanced scorecard in the same level and type of banks.