Derivatives Table On Commercial Bank Risk Management

The promulgation and implementation of the new accounting standards marked a great progress on the way of harmonizing the international accounting standards. Compared with the former accounting standards, the accounting standards are different in some aspects such as accounting principles, accounting items, accounting practices, etc. And the change in the accounting practices on commercial banks, especially the measurement of derivatives, will affect on the risk management of commercial banks. This thesis will do the relative research about this subject.To begin with, this thesis analyzes the changes which are about the accounting practices of commercial banks in the new accounting standards. Meanwhile, it also compares the new accounting standards with the IAS accounting standards. At the same time, with taking a financial report of a commercial bank as an example, this thesis analyzes in detail the influences on the financial report of commercial banks when the derivatives are measured into balance-sheet according to the new accounting standards. By means of this research, we find that this change will lead to the financial report expose the business conditions more really. However, this change will also cause an impact on the traditional accounting principles and accounting practices. Furthermore, the relative financial data will vibrate more drastically. All above bring forward a stricter requirement on the risk management of commercial banks.Secondly, through the empirical study, there is no obvious difference between the financial reports compiled with different accounting standards. This conclusion is not only reflected on the relative financial data, but also on the vibrations of the financial data. Contrary to the prevalent expectation, this conclusion is explained in the paper by means of careful analysis.Finally, in order to measure the risk conditions of derivatives, the OLS regression model is set up according to the information which is uncovered in financial reports of commercial banks. With this risk measurement model, it is found that different bank has different ability on risk management. At the same time; some policies suggestions are put forward to the authorities on how to improve the risk supervision.The risk management of commercial banks is always a hot issue in the bank business and the theory circle. The research on this issue is carried on in this paper and the conclusions maybe have some limitations because of the lack of some relative information and the shortage of academic ability. Therefore, in order to improve the further research, some suggestions are put forward in this paper.