Study On EVA Performance Evaluation Of W Bank

With the development of China's financial market reform process and speed up the pace of market-oriented interest rate,commercial Banks have begun to comply with this development trend,and started its business objectives,from profit maximization to maximize shareholder interests.The realization of shareholder value depends largely on whether the commercial Banks adopt scientific and reasonable performance appraisal methods in their operation.Economic Value Added,which is called EVA(Economic Value Added),it reflects the after deduct the cost of debt capital and equity capital cost,the enterprise by the rest of the profits,it will be the opportunity cost of capital into the inspection scope,can be more comprehensive considering comprehensive cost of capital of the enterprise.Compared with commonly used assessment indicators,EVA performance evaluation index has more advantages.It is not only an effective tool for enterprises to carry out value management,but also can reflect the financial indicators of operating performance,which can reflect the enterprise's ability to create value.In recent years,EVA performance assessment has received wide attention,and the academic circle has gradually increased its research and practical application.Therefore,establishing and improving the specific application of EVA as the core performance appraisal in commercial Banks is of vital importance to the development of the banking industry.Firstly,this paper statements the background,the purpose of this research and impact of EVA performance appraisal,and reviews and summarizes the relevant research and results of EVA theory at home and abroad.Then,with the connotation and main function of EVA as a starting point,compared the current commonly used performance appraisal indexes and EVA performance appraisal the advantages and disadvantages,sums up the W bank introduced the function and significance of the EVA performance appraisal.Thirdly,this paper elaborates the process and current status of EVA performance appraisal of W bank,and analyzes the specific setting and practical application of the performance appraisal system with EVA as the core.The EVA performance appraisal system established by W bank combines the actual operating conditions of development strategy and business structure with the application of EVA.In the calculation formula of EVA,adjustments have been made.W bank transfers the internal funds transfer price to EVA performance appraisal,so that it can play a better role.From W bank implementation of EVA performance appraisal concrete application,EVA performance appraisal for W had a more obvious role of bank management,however,in the process of implementation,met some resistance,there is a lot of problems.Finally,the paper by the China construction bank and the contractor's bank EVA performance appraisal experience,in view of the W Banks EVA performance appraisal problems and insufficiency,proposed to improve the W bank implementation of EVA performance evaluation related Suggestions.