Research On The Influence Factors Of Loan Loss Provisions Of Commercial Banks

Credit risk is the main risk to commercial banks,Loan Loss Provisions is one of the important guarantee for commercial bank against credit risk.In the process of the development of market economy in China,the provision for impairment of a commercial bank loan is made method in the continuous development and improvement.Our country in 2007 began to implement the new accounting standard for business enterprises,basically achieved synchronization with the international financial reporting standards.In the new.accounting standard for business enterprises,the regulations on commercial bank loan depreciation reserves has been a major change:from 5 loan classification into future cash flow discount method,which requires objective evidence of impairment of commercial bank loans,according to the real rate of interest on the initial confirmation now,and will be written down to its book value is expected to present value of future cash flows.Since the implementation of new accounting standards,China's commercial Banks follow the provision for loan impairment rules set,now represented by state-owned commercial Banks listed commercial Banks has been the basic use of the future cash flow discount method.In this paper,using the method of descriptive statistics and independent samples T test,from the perspective of the change of accounting standards,study the influence factors of commercial bank loan impairment provision is changing.Whether the change of accounting standards on loan impairment policy impact on commercial bank loan impairment provision?New accounting rules,our country commercial bank loan provision for the impairment of pro-cyclical still exist?Commercial bank loan impairment provision have any associated with earnings management.If there is a use of the motives of loan impairment accounting profit manipulation?Whether the capital management of commercial Banks and loan impairment provision related?This paper attempts to answer the above questions.Firstly,the paper summarizes the domestic and foreign related literature related to commercial bank loans impairment provision,from accounting standards,loans and loan impairment provision of impairment of paper summarizes factors two aspects.Secondly,the paper reviews the relevant theories of listed commercial bank loan impairment provision in China and policies,this paper expounds the loan impairment provision system in China has experienced the provision,according to the five quality classification by a single proportion plan carry and provision by the future cash flow discount method three phases,lay a theoretical foundation for the following empirical study.This paper takes the listed commercial Banks as the research object,the selection of listed commercial Banks loan impairment provision of the relevant data from 2002 to 2014,based on the perspective of accounting standards change,from the loan impairment and capital management,the depreciation reserves and the economic cycle and loan impairment and earnings management three aspects,such as the commercial bank loan provision for the impairment of factors affecting the problem.Preliminary descriptive statistics show that the implementation of new accounting standards and related regulatory policy is conducive to China's listed commercial Banks loan impairment provision for the improvement of the quality,the commercial Banks for the implementation of new accounting standards in general is good.For the analysis of factors that influence the provision of commercial bank loan impairment provision and considering the different before and after the implementation of new accounting standards,the capital adequacy ratio of commercial Banks CAR,loan growth variables delta L,surplus management EBTP on its loan impairment of whether there was a significant difference,this article first has carried on the relationship between the group of loan impairment and its influence factors analysis,and based on the perspective of accounting standards change,accounting standards for further change and loan impairment factors between groups.Analysis results show that the capital management,earnings management is the commercial bank loan provision for the impairment of the main influence factors of the economic cycle is for the provision for impairment of a commercial bank loan is made,the specific performance for commercial bank loans impairment of negative correlation with capital management,was a positive correlation with earnings management.Because of the commercial Banks capital strength and different judgments about future economic trends,the economic cycle is not the main influence on the formation impairment of commercial bank loans.And the changes of the accounting standards for failing to curb commercial Banks use loan impairment provision for the purpose of earnings management may be because of more than 2007-2014,listed commercial Banks,listed Banks exist strong high profit motive,thereby weakening its profit through the provision for impairment of a loan is made a smooth motives.Further analysis we found that the change of accounting standards will to some extent weaken the negative correlation between capital management and loan impairment provision,the possible reason is that the new accounting standards on the provision for impairment of a loan is made return and put forward the "objective evidence" of the request,effectively restrain the Banks' provision and return loan impairment of behavior.Based on the result of the research,the paper puts forward the recommendations:first,strengthening loan impairment provision of accounting information disclosure.Second,strengthen the internal and external supervision and illegal punishment.Third,perfect risk management system.