Research On Performance Evaluation Of Commercial Banks Based On BSC

With the global economic integration and the advancement of the wave of financial liberalization, China's commercial banks face stiff competition. From the present situation of China's economic development, establishing an objective, scientific and comprehensive performance evaluation of commercial banks system is very necessary. Relying solely on financial data to assess performance can not meet the needs, financial indicators can not reflect information about customers, qualitative factors of banks performance evaluation become more and more, which indicates that financial indicators alone has been unable to assess the performance of banks, but need non-financial indicators, so in the evaluation of bank performance, it is necessary to combine financial and non-financial indicators. Using BSC to evaluate the performance of commercial banks is an urgent need to adapt to social needs. Using BSC to evaluate the performance of commercial banks, can reflect the real conditions of the banks'operation, so as to continuously promote the commercial banks to improve management and enhance the performance.First,Propose the purpose and the significance of research, as well as the content and methods of research. Second, this paper discussed the performance evaluation system of foreign banks and demisc banks and summarized the main problems, then based on the study of principle of balanced score card,the author tried to construct the performance evaluation system which adapted to commercial banks in China. According to the concept of balanced score card strategy map, constructed the bank performance evaluation system at different levels, combining the non-financial indicators (dimension of customer, internal processes, learning and growth) with financial indicators (property dimension), making up the deficiencies of traditional performance management. Then, determined the weights through factor analysis for bank branch, trying to achieve performance evaluation of scientific and practical. In the part of empirical research, after the analysis of the bank's business, with the actual data of 7 H Bank branches in 2009, evaluated its performance according to the current performance evaluation system, point the problems of the evaluation system, then evaluate its performance according to the BSC performance evaluation system constructed in this paper, through the comparative analysis of the differences between the two systems, demonstrated the Balanced Score Card system in practice. Finally, the author proposed the ideas and the suggestions of improvement, looking forward to improve the problems existing in performance management of banks, thereby enhancing the ability of bank management.