Research Of Rural Commercial Bank’s Performance Evaluation Based On Balanced Scorecard

According to the overall goals and requirements as well as the related policy spirits of the Guidance on Accelerating the Stock Right Reform of Rural Cooperative Financial Institutions issued by China Banking Regulatory Commission(Banking Regulatory issued【2010】No.92),the county-level rural credit cooperatives nationwide have basically completed the reform into the rural commercial banks.Reconstructed by the rural credit cooperatives,comparing with other commercial banks,the rural commercial banks newly established by means of reform are at a competitive disadvantage as a result of inexperience in operation for the late start up in addition to the numerous problems left over by history.Especially in the recent years,as the financial market competition goes increasingly fierce,the rural financial market only belonged to the rural commercial banks in the past have been allocated.To meet the long-term scientific development requirements,it is the major strategic mission for the current rural commercial banks to build the perfect performance evaluation system that is capable of promoting the sustainable development of the rural commercial banks.In this article,it makes researches by means of case analysis,questionnaire research and analytic hierarchy process under the guidance of commercial bank performance evaluation theory,balanced record card theory and strategic map theory.First of all,it obtains the importance values of corresponding dimensions,critical factors and index values by issuing the questionnaire investigations to the leaders and employees of SinoPac Commercial Bank.Secondly,it adopts the analytic hierarchy process to calculate the dimensional index weight of the balanced record card of SinoPac Commercial Bank.As the the traditional enterprise performance evaluation index weight is mainly determined by means of expert scoring,namely inviting some experts,scholars as well as the company’s administrative staff and business backbone to score on the company’s performance indexes and then counting and summarizing the total scores of all indexes to obtain each final index weight.This kind of expert scoring method is too subjective to be used for the evaluation system of the balanced record card performance evaluation with the multidimensional factors,hence the analytic hierarchy process used in this article to determine the balanced record card performance evaluation index system.The analytic hierarchy process is a combination of qualitative evaluation and quantitative evaluation.It firstly determines thequantitative index value by means of the expert scoring and then carries out the quantitative analysis on the quantitative value to establish the judgment matrix.After the consistency check on the judgment matrix,it determines each index weight of the index system of the object being assessed.In this article,it takes the SinoPac Commercial Bank as an example to obtain the necessity for it to implement the balanced record card performance evaluation by analyzing the problems in the current performance evaluation of it,so as to provide the referenced opinions for the similar county rural commercial banks nationwide to introduce the and implement the balanced record card performance evaluation system.The innovation of this paper is that it takes Yongfeng Rural Commercial Bank as an example and conducts a study on performance evaluation of Rural Commercial Bank based on the Balanced Scorecard,which made some contribution to enriching applied theory research of middle and small-sized enterprises including small banks.The innovation that this paper chooses Yongfeng Rural Commercial Bank to carry out research is that the time for Rural credit cooperatives being changed into the joint-stock Rural Commercial Bank is not long,scientific and effective performance evaluation mechanism has not been established yet,so the key role of Rural Commercial Bank in promoting the rural economy cannot be effectively played.As a Rural Commercial Bank in county region which just completed the restructuring in2016,the problem of Yongfeng Rural Commercial Bank in the performance evaluation mechanism is representative and universal.Through the design and research of Yongfeng Rural Commercial Bank’s Balanced Scorecard Performance Evaluation System,this paper not only helps to improve the operational efficiency of Yongfeng Rural Commercial Bank,but also has practical guiding value for improving the management level of China’s rural commercial banks.The main research contents of this paper are as follows: The first part: Introduction.This part mainly elaborates the background and significance of this paper.Through the analysis of research status at home and abroad,it points out the research ideas and research methods.And finally the innovation and shortcomings of this paper are concluded.The second part: overview of the relevant theories of commercial bank performance evaluation and balanced scorecard.This part elaborates the relevant theory of performance evaluation of commercial banks,the basic theory of balanced scorecard and the basic theory of strategic map respectively.The third part: the present performance evaluation overview of Yongfeng Rural Commercial Bank.Firstly,it introduces Yongfeng RuralCommercial Bank.And then it analyzes the status quo of performance evaluation in Yongfeng Rural Commercial Bank and finds out its problems.And finally it makes feasibility analysis on the implementation of the balanced scorecard evaluation of Yongfeng Agricultural Bank.The fourth part: the design of performance evaluation system in Yongfeng Rural Commercial Bank.First of all,this part defines the principles for designing performance evaluation system of Yongfeng Rural Commercial Bank and determines the strategic objectives of performance evaluation.Then it draws strategic map of Balanced Scorecard of the Yongfeng Rural Commercial Bank and build key index at the level of Yongfeng Rural Commercial Bank and the department level.Finally,it calculates the weight and weight coefficient of the Balanced Scorecard of Yongfeng Rural Commercial Bank by using the Analytic Hierarchy Process,and then introduces the implementation process and expected effect of the Balanced Scorecard Performance Evaluation System.The fifth part: conclusion and policy suggestion.The conclusions this article obtains include: one,this article takes the SinoPac Commercial Bank as an example to elaborate the construction process of the balanced record card-based performance evaluation system,which is of theoretical guidance significance for the similar county rural commercial banks to introduce and implement the balanced record card;tow,it adopts the analytic hierarchy process to allocate the performance evaluation index system weight,construct the balanced record card performance management system of the SinoPac Commercial Bank on the company level and department level.In terms of the expected implementation effect of the balanced record card performance evaluation system,the performance evaluation system which has been designed and completed is scientific and effective and it is of practical guidance significance for the industry and even the small and medium-sized enterprises to establish the performance evaluation system.In this article,it also proposes the policy suggestions such as improving the performance-evaluation awareness of the middle and senior management,establishing the special performance evaluation organization,regulating the internal control and auditing systems,enhancing the propaganda and training of the performance evaluation in addition to the execution and feedback of the balanced record card.