EVA Improvement And Use On Performance Evaluation In Bank Of China

With the entering of foreign banks,domestic commercial banks facing increasingly fierce market competition.The actions as blind expansion of business scale and high interest rates deposit seriously affect the profitability of Chinese commercial banks,the existing extensive management has been unable to adapt to the fierce competition.Chinese commercial banks need a performance evaluation system guiding the resources to the business which can bring more revenues and enhance market competitiveness.In this background,EVA performance evaluation system began to be gradually introduced into China's commercial bank,from China Construction Bank first use EVA in 2002,to EVA now become a key financial evaluation index,EVA has made a great contribution on performance evaluation in Chinese commercial banks.However,due to the difficulty of the calculation data acquisition,computation cumbersome,difficult to spread the concept and the short of the index itself,there are still some problems in the use of EVA,we had to adjust and improve it while using in Chinese commercial bank.Through analysis of the literature research,case analysis and normative analysis methods,this thesis analyses and illustrated the necessity,principle and content of EVA improvement.Moreover,the improved EVA model is specific applied in the performance evaluation in Bank of China,Jiangxi Branch,thus conclude the advantages of the improvement,finally puts forward guarantee suggestions.The main contents of the article are as follows:Full text includes five parts: the first part the introduction clarified in this paper,the definition,economic principles and basic theories of EVA are analyzed and illustrated as well as verify the goal congruence between EVA and maximization of shareholder value through the formula calculation and the performance of enterprises can be reflected more truly by EVA model.Moreover,the article introduces traditional EVA calculation formula and it's mainly accounting adjustments.Secondly,the article introduce the reasoning,the principle and the method of EVA improvement in Bank of China in practice.First introduced the improved EVA model of the background and necessity of Chinese bank performance evaluation,and then expounds the principle of improved EVA model on Chinese bank performance evaluation,finally,the computing formula and method are improved EVA model establishment.Third is to improve the EVA model to evaluate the performance of China bank Jiangxi branch within agencies,and with the calculation of EVA and EVA return ratio,the results were compared and summarized,as well as suggestions on improve performance evaluation results are given.Finally,the article summarizes the advantages of improvement EVA performance evaluation model and puts forward the guarantee suggestions,involving the following:promote EVA management concept;establish and improve the basis of the data information system;strengthen the construction of the appraisal system;perfect the excitation mechanism;perfect the excitation mechanism and strengthen the performance evaluation team.