Study On Performance Evaluation System Of Commucial Bank Based On The Economic Value Added And The Balanced Scorecard

Performance is the lifeblood of enterprises. The scientific performance evaluation system directly related to the survival and development of the enterprises. With the rapid development of the information technology and knowledge-based economy, more and more enterprises attach importance to performance management and hope to establish sound performance management systems to manage the performance of staff and conducts at all levels. As the most important financial institutions of China, Commercial Banks' performance is not only related to the health of the banking system's operation and development, but also has great impact on the whole country's macro-economic development. Viewing the current practice of the performance evaluation system development in the western countries and our commercial banks, to construct a unified performance evaluation system is very necessary for the strategic development for the commercial banks.Combing the view of the strategic management perspective, based on the Economic Value Added (EVA) theory and the Balanced Scorecard (BSC) theory, this paper describes the status quo of the commercial banks' performance evaluation and strategic management. Then this paper summarizes the problems of the current Chinese commercial banks in the performance evaluation and analyzes the reasons from strategic and ideological concepts, the personnel quality, management structure aspects. Secondly, this paper studies the EVA and BSC Mechanism, performance evaluation indices' design and performance evaluation methods, and identifies the methods to calculate the weight of the indices. Thirdly, this paper construct the EVA-BSC performance evaluation system from five aspects: financial, customer, internal operation processes, learning and growth, and EVA. These five dimensions of the evaluation system include non-financial aspects (customer, internal processes, learning and growth), and financial (finance and EVA) indices together. And this connects the performance evaluation with the strategic management and repairs the tradition performance evaluation system that focuses only on the financial indices. Moreover, this paper emphasizes the keys to implement the system successfully. Finally, using the data of the Bank of China, this paper makes empirical research on the constructed performance evaluation system. The results propose that the Bank of China needs to focus on learning and enhance the growth of the capacity to improve performance and enhance core competitiveness. The empirical research also demonstrates the practicality of the Performance Evaluation System based on the EVA and BSC.