Commercial bank performance appraisal system welcomes optimization
appraisal baton promotes banks to serve the real economy
Our reporter Zeng Jinhua
The optimized "Commercial Bank Performance Evaluation Measures" adjusts the indicator system to serve the national development goals and the real economy, development quality, risk prevention and control, and operating efficiency 4 categories, each with a weight of 25%, taking into account the focus and balance of assessment relationship.
According to the new performance evaluation method, a benign interaction between bank credit and the national economy can be realized, and financial bubbles can be effectively prevented, and systemic financial risks can be prevented.
Recently, the Ministry of Finance issued the "Measures for Performance Evaluation of Commercial Banks" (hereinafter referred to as the "Measures") to optimize and improve the performance evaluation system of commercial banks.
The "Measures" made major adjustments to the original evaluation system, further gave full play to the decisive role of the market mechanism, encouraged commercial banks to respond more effectively to national macro policies, strengthened the ability of commercial banks to serve the real economy and micro-economy, and guided and promoted the development of commercial banks. Quality development.
Persist in serving the real economy
The report of the 19th National Congress of the Communist Party of China proposed to deepen the reform of the financial system and enhance the ability of financial services to serve the real economy.
The Fifth Plenary Session of the Nineteenth Central Committee of the Communist Party of China made it clear that “persist in putting the emphasis on economic development on the real economy” and “build an institutional mechanism for financial support to effectively support the real economy”.
This requires further improvement of the current evaluation system, highlighting the new concept of financial services to the real economy and innovative development of financial services.
It is reported that the performance evaluation before the reform set four types of indicators, specifically profitability, operating growth, asset quality, and solvency.
The "Measures" adjusted the indicator system to serve the national development goals and the real economy, development quality, risk prevention and control, and business benefits. Each category has a weight of 25%, taking into account the focus of assessment and the balance relationship.
Zhao Quanhou, director of the Financial Research Center of the Chinese Academy of Fiscal Sciences, believes that compared with the four types of indicators before the reform, the evaluation dimensions of the Measures can better reflect the social responsibility of commercial banks on the basis of realizing the sustainable operation of commercial banks, and embody finance as an entity The purpose of economic service.
"According to the new performance evaluation method, it is possible to achieve a benign interaction between bank credit and the national economy, effectively prevent financial bubbles, and prevent systemic financial risks."
Zhang Yi, general manager of the Finance and Accounting Department of China Construction Bank, said that the "Measures" will encourage commercial banks to respond more effectively to national macroeconomic policies, enhance their ability to serve the real economy and microeconomics, and guide and promote commercial banks to achieve high-quality and sustainable development.
Comprehensively optimize the evaluation index system
"The Measures highlight the higher-quality development requirements of state-owned financial capital investors for my country's commercial banks in the context of the new era. The biggest highlight is the optimization of the evaluation index system." Lian Ping, Director of the Industry Development Research Committee of the China Banking Association Say.
It is worth noting that the evaluation guidance of the Measures highlights comprehensive economic benefits such as serving the country's macro strategy, serving the real economy, and serving the micro economy.
Adding new dimensions for serving the country’s development goals and real economy evaluation, such as the "two increases and two controls" evaluation indicators for inclusive small and micro enterprise loans, serving ecological civilization strategies, and serving strategic emerging industry indicators, and promoting commercial banks to respond more effectively to national macro policies .
"The addition of indicators such as the service ecological civilization strategy aims to encourage commercial banks to more effectively implement the national macroeconomic policies, and promote the benign interaction between commercial banks and the real economy, symbiosis and co-prosperity. Highlight the orientation of operating efficiency, and set cost-to-income ratios, economic profit margins, etc. The indicators are adjusted to development quality indicators such as net profit per capita and profits and taxes paid per capita, aiming to guide commercial banks to focus on improving per capita efficiency and improving operating quality and efficiency.” said Liu Yagan, general manager of the Financial Accounting Department of Industrial and Commercial Bank of China.
"Serving the national development goals and real economy indicators weighed 25%, which further strengthened the confidence and determination of commercial banks to serve the national strategy and assume social responsibilities." Zhang Yi said that CCB should further highlight the assessment of serving the real economy and implement the "six stability" "The "six guarantees" policy requires to increase the investment in key areas such as inclusive finance, green finance, and strategic emerging industries, as well as the assessment of services in the areas of people's livelihood such as smart government and housing leasing.
Evaluation results are linked to salary
It is worth noting that according to the "Measures", the application of assessment results is more prominently linked to matters such as executive salary, total corporate salary, and leadership assessment, and further improves the mechanism of "matching salary and performance, and equal emphasis on incentives and constraints".
Zhang Yi believes that strengthening the use of assessment results has better played the role of the baton.
"The promulgation of the "Measures" is very timely, which will help guide commercial banks to better support and serve the real economy and improve their own development level and quality. As a major state-owned bank, ICBC will resolutely implement the assessment guidance and guiding spirit of the "Measures" , In accordance with the decisions and deployment of the Party Central Committee and the State Council, coordinate the work of supporting the real economy, serving the micro economy, and preventing financial risks, accelerate the improvement of financial service efficiency, and give full play to the financial'stabilizer' of major banks and the market'ballast stone' At the same time, it will also work hard on internal skills, improve the level of refined management, continuously improve the quality and efficiency of development, and enhance the ability to create value for shareholders." Liu Yagan said.
According to regulations, the performance evaluation of commercial banks in 2021 and beyond will be implemented in accordance with the Measures.
It is reported that in addition to commercial banks, other types of financial companies, such as sovereign wealth funds, policy financial companies, and other commercial financial companies such as securities, insurance, and financial holding companies, have started to research and improve their performance evaluation systems. It will be issued and implemented separately, and the "Measures for Performance Evaluation of Financial Enterprises" issued in 2016 will continue to be implemented before the implementation of the new measures.
"Although they are both financial institutions, commercial banks, insurance, securities and other types of financial institutions have their own operating characteristics and laws. The performance evaluation method from comprehensive to classified reflects my country's refinement and deepening of the performance evaluation of financial institutions." Zhao Quanhou said.
Assessment baton to promote banks to serve the real economy
Assessment baton to promote banks to serve the real economy