Research On The Performance Evaluation For The Second Reform Of City Commercial Banks

The city commercial banks in China have been set up on the basis of the practical need raised by the financial system reform and financial function. When the reform of economic system of China goes further, a diverse structure in bank industry has almost been completed. As our city commercial banks are facing more severe competitions, the second reform of this system is urgently needed. At the same time, the original performance assessment index is not able to reflect the real situation. It will be a challenging study to build a new system of performance assessment which fits the second reform of city commercial banks.After explaining the background and significance of the topic, this paper will study the domestic and abroad theory of the reforms and performance assessment of city commercial banks in order to review some valuable experiences and practice. Afterwards, the paper will set up an initial performance assessment system in the key performance area of city commercial bank basing on the strategy purpose and overall tendency of the second reform of city commercial bank in China. This paper will adjust and optimize the traditional index system of performance assessment and construct the performance index system by combining the financial indexes and non-financial indexes.Moreover, the paper corrects the benefit capacity indexes of three traditional accounting statements by introducing the Economic Value Added EVA assessment indexes in the financial assessment indexes system. Thus, the evaluation result will have a more accurate reflection of the corporation operation achievement and give more useful guides for the high level management of city commercial banks to promote the maximal value of shareholders' operation goals.On the other hand, the non-financial indexes will lead a comprehensive and complete evaluation over the performance of city commercial bank from the perspectives of social responsibility, economic development, clients and employees in order to form a scientific and effective performance assessment system. Furthermore, this paper will evaluate the performance of commercial bank in Z city which is in the stage of second reform as a sample by using the SPSS 13.0 statistical software and factor analysis method to analyze the data. This analysis will also provide some strategies and suggestions as a reference for the promotion of the performance of second reform. This paper will mainly use a comparative study in theory and practice to build a performance assessment indexes system for the second reforms of city commercial banks. It will also prove the necessity and possibility of model of performance assessment of second reform of city commercial banks in practical application by combining the theoretic analysis and practical study. The paper makes efforts on having an objective, systematic and scientific methodology to keep the systematicness, creativity and operability in the research achievement in order to produce a diverse analysis system and to provide directive significance for the future development of commercial bank system.