Open Access Open Access  Restricted Access Subscription or Fee Access

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

Zhiwei Zhang

Abstract


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.

Keywords


Balanced scorecard, commercial banks, composite value-creation capacity, performance evaluation

Full Text:

PDF


Disclaimer/Regarding indexing issue:

We have provided the online access of all issues and papers to the indexing agencies (as given on journal web site). It’s depend on indexing agencies when, how and what manner they can index or not. Hence, we like to inform that on the basis of earlier indexing, we can’t predict the today or future indexing policy of third party (i.e. indexing agencies) as they have right to discontinue any journal at any time without prior information to the journal. So, please neither sends any question nor expects any answer from us on the behalf of third party i.e. indexing agencies.Hence, we will not issue any certificate or letter for indexing issue. Our role is just to provide the online access to them. So we do properly this and one can visit indexing agencies website to get the authentic information. Also: DOI is paid service which provided by a third party. We never mentioned that we go for this for our any journal. However, journal have no objection if author go directly for this paid DOI service.