Study On The Value Creation Ability Of Chinese Commercial Banks-Based On EVA

At present, with the further reform in China, the management about the value of bank has taken a very important part. It has been proved that the bank can obtain great potential development by its added value whose key factors are increase, new and insurance. Then how can we measure the ability of value creation of bank and build the simulating mechanism, which is the lone of value creation? Today, a new method generally applied in the world is economic value added, the management performance of all levels institutions under its rule. The institution of EVA effectively promotes the development of business and increases the growth of inner value of the bank. EVA involves the cost of the debt and the equity, and represents the true value added from the operations. EVA is one of the tool of performing measurement radical. Therefore, we elaborate deeply the connotation of EVA theory and use the successful experiences in applying EVA to judge management performance and stimulate with western banks as reference.This paper analyses the interior and exterior environment in which our commercial banks are facing in applying for EVA as the criteria of management performance and premium distribution of all levels institutions under its rule based on their actual situation in reality operation, and accordingly puts forward the basic thought and the problems need to be disposed in carrying out performance evaluating and stimulating after the adoption of EVA model. This paper also adopts traditional financial index and the EVA system to analysis and calculate the commercial banks'ability of evaluation creation. At the same time, we compare the evaluation creation ability between the listed commercial banks and the un-listed commercial banks. Furthermore, we find out the relationship among the commercial banks market structure, the commercial banks capital structure and commercial banks evaluation creation. Finally, from the market structure, property right structure and capital structure, we put forward some measures and steps about the reformation of our country's commercial banks system. In details, these measures include optimizing the market structure and the capital structure; the former means changing the state-owned commercial banks'monopolization, the latter means multiplying the commercial banks'shareholder, reducing capital costs and increasing the commercial banks'EVA.Apart from what has been talked about above, this article also has a deep analysis about how to carry out economic. With the help of EVA and RAROC, it uses datum to analyze how to realize the assessment about its branch banks, business units and clients managers, It also gives some good advice about how to reform the banking in China. As long as our commercial bank continue to reform deeply and try to create the opportunities, EVA approach must be totally carried out and will bring more and more benefit to our commercial banks.