The Accounting Research On Loan Impairment Of China’s Commercial Banks

Since the outbreak of the global financial crisis caused by the US subprime mortgage crisis in 2008,people began to doubt the quality of credit assets of commercial banks.They criticize and reflect on the current accounting standards for impairment of financial assets.They believe that the existing accounting standards exacerbated the financial crisis to a large extent.China’s economic growth began to slow down in recent years,and foreign investment banks began to bad-mouthing the Chinese economy.They generally underestimated the profitability of China’s commercial banks and assets quality.At present,China’s capital market has begun to open to foreign capitals.We hope that our accounting standards and international accounting standards convergence in essence.And in this way our businesses can allocate the global resources to achieve optimal allocation.The healthy and stable development of our commercial banks is of far-reaching significance to China’s economic development.Whether there is "pro-cyclical effect" and "cliff effect" in the "incurred loss model" of loans adopted by commercial banks in China,whether it is necessary to introduce the "expected loss model" developed by the International Accounting Standards Board,and when we will implement the "expected loss model" if necessary? Now what should our commercial banks do to prepare for the effective implementation of the model? For these problems,this paper combines the status quo of China’s commercial banks,through the analysis of accounting theory and statistical analysis to draw the following conclusions: At present,there are strong "pro-cyclical effect" and "cliff effect" in the "incurred loss model" of China’s commercial banks,and the result of the empirical analysis shows that the commercial banks need to introduce the "expected loss model" to reduce the adverse consequences of the " incurred loss model".In view of the fact that China’s economy is in the downward channel,the risk of credit default is increasing,and the credit risk management level of commercial banks in our country needs to be improved.Webelieve that it is not ripe for implementing the "expected loss model",and it is necessary to accelerate the upgrading of banking credit risk information management now.