Importance Currently, performance appraisal in banking underlies managerial decisions and confident and mutually beneficial relationships between banks and customers. The research discusses relevant issues as coordinated and appropriate activities of credit institutions generate the efficiency of the banking system and the Russian economy as a whole. Objectives The research identifies approaches to bank performance appraisal on the basis of quantitative and qualitative indicators. Methods Evaluation of the banking services quality is a crucial component of the quality management system. It controls the quality of services, lays the basis for analysis needed to take managerial decisions, and provides feedback for sustainable and feasible banking system. Quantitative evaluation of indicators can be performed by the bank and external entities (Central Bank, rating agencies) so to determine the development level of the banking system and certain credit institutions and identify the leaders of the sector. Conclusions and Relevance Quantitative evaluation of the bank performance is a tool to find the ratio of resource spending and final results of their use, thereby letting owners make up a development strategy for several years. It will help tracing which processes influenced the economic efficiency of the bank performance. Using such evaluation, it is possible to reconcile costs and results of activities with various methods.
Keywords: financial analysis, performance appraisal, method, financial result, bank value
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