Importance Of Evaluating Bank Performance : A Special Kind Of Type Of Enterprise, The Business Goal Of Bank

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1.1 The importance of evaluating bank performance

As a special kind of type of enterprise, the business goal of bank is to maximize the value of the shareholders. In the process of operate, what does the financial indicators behavior? How to profit? Whether the risk is moderate or not? All these questions are related to the bank performance. Therefore, it is important for bank to evaluate the performance so they can make adjustments to operate the risk control and sustainable profitability.
According to Rengasamy (2012), the word "Performance" means that the execution or achievement, or perform specific activities, or fulfill the obligations. Therefore, "Bank performance" can be defined as a bank take use of resources to achieve its goals. In addition, the performance of the bank also implicate that employ a series of indicators to reflect the status of the bank and in a way to reflect the bank 's ability to achieve the desired objectives.
As a significant component of the modern economy, the efficiency of the banking is especially important. In order to ensure the health of the financial system and the efficiency of economy, we must make a careful assessment and analysis of the banks (Rengasamy 2012).
Rengasamy (2012) also said that although banks help enterprise organizations by providing a wide range of products and services, products and services are more or less identical from one bank to another, and there is a small range to distinguish them from each other.

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