Comprehensive Performance Evaluation Of Small And Medium Size Commercial Banks Based On Balance Score Card

Financial factor is more and more important as the great development of modern economy. Thus commercial Banks play a decisive role in financial assets, and the great development of small and medium size Banks promote the rapid progress of economy. It has aggravate the competition among Banks that the stockholding reforms of rural credit cooperatives in 2003 and the allround opening of banking in 2006.Thus all the small and medium commercial Banks should reinforce their management more than before to get survival and development in such a market environment. And the requirements of performance evaluation is stronger and stronger. The performance evaluation before is no more than a evaluation after the fact. It couldn't provide integrative evaluation, without mentioning predictions and supervisions. Evaluation like this could already not meet the needs of new situations, which make it necessary to establish an integrative performance evaluation system that could provide predictions, supervisions and integrative evaluations. I'm sure it will increase the small and medium size Banks'competitiveness .This article which using the Balance Score Card provides an enforceable performance evaluation system by overview and analysis the researches about small and medium size commercial Banks home and abroad . The valuation system is an internal evaluation about the branch of the small and medium size commercial Banks which is based on the superior bank. Firstly, in a clear understanding of the formation of the banking strategy, the system builds based on BSC from the perspective of the strategy decomposition . Secondly, in the process of the strategic decomposition, the operating characteristics of small and medium size commercial Banks Combine. Again, the selection and design of specific indicators is a combination of small and medium commercial size Banks branches operating features. To determine the weighing of the hierarchies and indicators, we took the AB commercial Bank of Hebei for example used the analytic hierarchy process. To quantify the qualitative indicators we used the fuzzy evaluation ,which make it easier to evaluate and manage. Because we determined the indicators and weighing of every hierarchies, based on which we established different types of fuzzy models to make it standard, this indicators system not only could make longitudinal comparisons between small and medium size commercial Banks ,but also autologous transverse comparisons and evaluation.To help the small and medium size commercial Banks evaluate the performance , the author bring us some improvement which include internal process management, risk control, human resources and corporate governance .