Applying Balanced Scorecard Model to Establish Performance Evaluation System of Chinese Commercial Banks

摘要

Comprehensively evaluating the operating status and the competitiveness is the foundation to assess the composite developing capacity of Chinese commercial banks. Based on the concept of "composite value-creation capacity", this paper applies balanced scorecard model to develop a prototype of evaluation system for Chinese commercial banks to assess their overall operating capabilities from six aspects. According to existing studies, the evaluation of operating and developing status of Chinese commercial banks mostly concentrates on the assessment of the short-term financial performance or operating efficiency, which leads to the lack of comprehensive understanding and judgment to the composite developing capacity. Therefore, this paper aims to apply the balanced scorecard model to establish a comprehensive performance evaluation system to assess the composite value-creation capacity of commercial banks. The balanced scorecard model not only emphasizes on the close bond between corporate strategy and performance evaluation, but also provides a specific system indication framework, which can effectively balance the relationship between short -term and long-term objectives, as well as financial objectives and non-financial objectives.