Abstract

The axle of this study is to have a clear picture of how governmental banks management their working environment. In this light, the study in its First Section gives a background to the study by using a series of Experiment, with 2 branches of commercial bank to test the effect of performance incentives on easement. It shows that, while high – powered incentives lead to greater screening effort.
Second, the paper presents direct evidence that incentive contracts distort judgments and beliefs. And this part is a detailed review on banking daily routine evaluation and assessment tools too.
The third part of this study is on hypothesis testing and use is made of a simple treating instrument.
This leads as to conclude in the last section that these banks with good management policies have a lower managerial default rate and relatively higher income.