Research On Performance Evaluation Index System Of Listed Commercial Banks

As the principal part of financial system, the operational benefits of the high and low of commercial banks have restriction to the development of national economics. According to The Development Book of Top500Companies in2013, the profits of all banks on the list accounts for over half of the total. The high profits are striking contrast to the recession of the real economy. We can not know if banking industry can continue to develop sustainably according to the surface of such a good trend. However, the real economy’s loss is not a normal phenomenon. It has been shown that the profitability of banks will be confronted with long-term challenges. At the same time, the national banks face intense pressure and challenges from the foreign banks settled in China. For a long time, commercial banks of our country have paid great attention to single financial index. Although, self-discipline exists, this single financial index is overwhelming emphasis on share-holder value orientation and has been weighted too heavily on short-term interests, but it fails to recognize risks which affect performance of bank profoundly. In the case, because of diversification, the local banks can no longer insist on the traditional earnings of interests spread, and to measure the performance of banks rely on profits. Therefore,it is imperative how to build evaluation index system to appraise banks performance.This paper is divided into five parts:The first part is the introduction. This part points out the background of topics and significance, summarizes the main viewpoints of scholars both domestic and foreign, expounds the research methods, innovations and the lack of research. The second part is based on the analysis of the commercial banks’ performance evaluation, expounds the performance of banks and other related concepts on the introduction of Principal-agent Theory, Stakeholder Theory, Risk Management Theory and Strategic Management Theory,and analyses the status quo of performance and performance evaluation of China’s listed commercial banks. The third part summarizes the principles of the selection of bank performance evaluation and elaborate selection method of performance evaluation at home and abroad, establishes the commercial bank performance evaluation system in this paper from the status quo of performance and performance evaluation of China’s listed commercial banks. The fourth part is the empirical analysis, the over all level of performance of commercial banks are evaluated and analyzed by selecting the choice of sample data and indicators which reflect the value creation, using the Excel to disposal date, using the SPSS software to factor analysis. The result shows that a large gap exists in performance management and the performance level of national listed commercial banks. State-owned commercial banks and corporate commercial banks have a significantly different impact. Moreover, there is large room for the promotion of performance evaluation. The fifth part summarizes the research findings, policy recommendations, and prospects for the future research directions.The innovation and characteristics of this paper is that the value creation throughout the performance evaluation index system to perfect the previous studies that only consider "Accounting Profit". It eliminates short-term disadvantage, fuses risk which can influent business performance. While consulting the guidelines of performance assessment issued by the CBRC, the performance evaluation index system includes risk management, business performance, restructuring and development, social responsibility. To make the evaluation system more perfect and reasonable we pay attention to quantify the non-financial indicators and choose evaluations which more comprehensive and operable.