Research On Performance Evaluation Improvement Of JN Branch Of China Construction Bank

As the main body of China's financial system,commercial banks' operational results have a direct bearing on the development of the national economy.For a long time,the performance evaluation of commercial banks is a key topic in the theoretical and practical circles.Over the past decade,with the rapid development of the global economy,a large number of foreign banks set up branches in China,among which HSBC is on the top of the list to settle office in Hunan Province in 2008,thereafter followed by CITI,Shinhan,East Asia,Standard Chartered,Hengfeng,etc.With so many joint-stock commercial banks,there are 12 national-wide joint-stock commercial banks established offices in the capital city of the Province by the end of 2017.Various types of private banks,rural commercial banks,local commercial banks,and other financial institutions are facing fierce competition,and internet finance is developing at a rapid pace.The arrival rate of traditional bank physical outlets dropped significantly.The traditional state-owned commercial banks are obviously unable to stand in the competition,if still adopting the performance evaluation method which excessively focused on single financial indicator and ignoring the long-term development of bank.Therefore,it is very necessary to build a comprehensive and effective evaluation system to measure the performance of banks.EVA(economic value added)and BSC(balanced score card)are cutting-edge performance management tools,and combination of the two is also hot topic in the field of business management.When it comes to specific indicators,KPI(key performance indicators)is the basis no matter which tool is adopted.As a typical state-owned commercial bank,China Construction Bank has started Performance Evaluation for a long time.Its Performance Evaluation system achieved its effect to some extent,but still there are lots of problems to be solved.I t is imperative to improve performance evaluation system for a good & sound development.By taking JN branch of China Construction Bank as a case study,on the basis of reviewing related documents and systemically analyzing the theory,advantages & disadvantages of KPI,BSC& EVA,firstly,the paper gave a feasibility study of combination of the three.Secondly,on the basis of analysis deficiencies of KPI of 2016 of JN branch ofChina Construction Bank,this paper adjusted EVA formula appropriately,and empower indicators by introducing AHP(analytic hierarchy process).Finally,a new Performance Evaluation System is completed and established,with KPI as basis,EVA as core and BSC as support.The smooth implementation of new Performance Evaluation System needs the bank to adjust all aspects and improve the internal environment of EVA.The exploration on EVA in this paper,will be conducive to build theory system suitable for Chinese enterprises in the context of China,and the newly-designed Performance Evaluation System is not only applicable to this secondary branch,but also has reference significance to other secondary branches.