How can you effectively measure the financial performance of a bank?

It depends on who owns the bank. 

• If it is owned by a business house it would be profit maximization and NPA minimization. 
• For a cooperative bank it would be loans to members at lower than market rate of interest and general well being of members of the cooperative. Who could be a union of farmers, traders or even government employees. 
• For a Govt or a bankers bank it would be control of inflation or following the govt directive to give more credit to farmers and small traders if it is a Govt policy. 
• It must be remembered that most defaulters of loans are not poor people but rich people with connections high up. 

As a Bank is a Financial Institute, So the amount of Deposits and Lending would be a feasible tool to measure the performance. 

Put various countries assess the financial performance of banks standards through the use of indicators to measure the efficiency, profitability and the achievement of the objectives set accuracy. There are several financial indicators used by those involved in the evaluation and assessment objectives and by its diversity. In the United States federal regulators of banks is classified as a unified arrangement for financial institutions system that includes five types of indicators abbreviated as arranged Pal (CAMELS) and symbolizes arrangement English words consisting of indicators and is the adequacy (solvency) capital "Capital Adequacy" and the quality of loans by loans to total assets, or which symbolizes the interest rate on the loans to capital and referred to as "Asset Quality", and administrative efficiency "Management Quality" followed by gains or return "Earnings" rates and finally liquidity "liquidity" and added it is also about market risk index "Sensitivity of Market Risk" sensitivity. And it aims to use these indicators to distinguish distressed banks for the proper functioning of banks.

In Europe, we find other models, including, for example, the French model, which "ORAP" and Italy's system uses a system of "PATROL" and Germany, which used model symbolized by b "BAKIS" and such models contain a set of indicators include a number of financial ratios specializes in Asset quality analysis (in Germany this indicator contains ratio) and profitability analysis (ten ratios) and proportions of liquidity and one ratio of capital adequacy ratio and to market risk (all ratios German model). But in the overall diameters of the world, the common is to subdue the commercial banking system to the standards (Basel1), which is the control of central banks based on capital adequacy measurements to risky assets weighted (with a minimum of8%) is added to the criteria issued by the Committee of the Bank settlements Basel International in (Bank for International Settlements "BIS") and set a new basis for the development of the style of calculating capital adequacy standard, which became known as the (Basel2).

Analyse the bank's accounts, in context.  In the absense of fraud it's all there, somewhere.

maximizing the deposits ans lending loans are the major areas where the banks can maximize the performance , but this major factors are governed by many other small factors which can cause a huge harm in performance of the banks and those are

1. customer relation relation as one of there family member

2. treating the inner staffs well and fulfilling there wants, this will increase the performance of the staffs and ultimately it will boost the performance also.

Well, there are lots of parameters and metrics through which the performance of Bank can be evaluated, these include:

• Share Price
• Credit Ratings
• Deposit Positions with regard to capital requirements
• Profits comparision with previous years / benchmarking
• Default Ratio, write offs (The lower the Better)

first , Look for it's Goals and planning

then , use of analysis tools to measure the achievement of those goals and plans .

I agree on the answers to colleagues

Excellent work in the bank when it was followed by a clear fiscal policies

And it is committed to applying the foundations of transparency in the work

And seek technical development