Study On Accounting Information Disclosure Of Commercial Banks In China

With the rapid development of banking and the deepening globalization, more and more innovative products appear. To protect the investors’right to be informed and meet the regulators’requirements, strict accounting information rules have been made. China starts late on bank disclosure and develops relatively backward. This paper focuses on this topic. I try to find gaps in bank disclosure by making analysis of large data in annual reports, and then perform cause analysis. Finally, effective strategies on the problems are made.Normative approach, method of data analysis and comparative analysis are adopted. Based on information asymmetry theory, externality theory and etc, I sought out bank disclosure peculiarity, that is emphasizing the security information, profitability information and liquidity information. Currently, the bank disclosure model is the one supplement a focus on mandatory information disclosure with voluntary disclosure. Under this model, stakeholders pay more attention on accounting information disclosure, which is the need for our country Commercial bank own development as well as banking regulation and supervision.As one of nations on the Basel Committee, we should bring the information disclosure requirements into correspondence with Basel Accord. Besides, China Banking Regulatory Commission, China Securities Regulatory Commission and People’s Bank of China have issued banking information disclosure requirements. I introduce the two kind of institutional norms in my paper to analysis the institutional environment. On this basis, I thoroughly analyze the Commercial Bank and value them. I read100or more banks’annual reports during the year2010to2012, and collect information on capital adequacy, assets quality, credit risk, market risk, liquidity risk, profitability, off-banlance sheet business. With the data, I summaries the status quo in bank disclosure, and then find the gap. Firstly, information insufficient, including the structure of asset and liability, risk management, derivative financial instruments, statement notes, and etc. Secondly, unstrung authenticity, such as difference between asset quality and the actual gap, the overstate of capital adequacy. Thirdly, different method in dealing with accounting practice especially the new products, such as the financial products. Tracing to the source, the reasons can be classified as internal causes, which include the dubious accounting, the unsound internal control, weak technique and management skills, as well as the external causes, such as the barbarism of related standards, non-effective supervision and insufficient independent of outside auditor. Accordingly, suggestion on this topic is introduced. Commercial should pay more attention on improvement of corporate governance mechanism and incentive and constraint mechanism, perfection measures of our accounting checking system, formation of comprehensive risk management and so on. Only in this way, accounting information disclosure of commercial bank can be improved at all levels.