Discussion On The Performance Evaluation System Of City Commercial Banks

In today’s highly competitive financial markets, banks begin to clearly feel the impact from traditional performance evaluation system, and they have started to change their ideas to build a new system. Economic value added was leaded into banking industry for the first time as a main indicator of performance evaluation by CCB, which has achieved excellent experience and results. However, due to the city commercial banks is always a newcomer and vulnerable position in the development process, there are too much emphasis on the development of assets and liabilities in order to meet the access requirements of regulatory authorities and the promotion of social status. Industry evaluation system is seriously lagging behind and it only focus on deposit and lending expansion of the scale, while ignoring the value of soft assets. Therefore whether it is during the evaluation of institutional performance or resource allocation, city commercial banks tend to put the marketing department in the first place and even diverse management resources into marketing use, which virtually lower the position of functional department. This give rise to operation failure during the internal control process, which is also the main reason why there are frequent cases of city commercial banks in recent years.This thesis choose city commercial banks as subject, the implementation of main performance evaluation system as object, to comprehensively analyze the operations of banks. In the meantime, it learns from foreign advanced performance evaluation theory and research production, combining with development characteristics of China’s city commercial banks, so as to explore the relations between development and management of city commercial banks and establish constructing indicators and strategies of performance evaluation system.