Research On Z Foreign Bank's Non-performing Loan Risk Control

With the economic globalization and China economy rapid development,financial industry has played more and more important role in among the whole market.Commercial bank is one of the most vital parts of financial industry which play an importation role of economic development and social stability.As Financial Institution,there are various kinds of risks during the daily business activities,especially the credit risk.Also,commercial banks are accounting entities,thus,the accounting information quality should reach a higher standard.Practice shows that the assets of commercial banks,especially the loan business,vulnerable in the financial crisis.At the end of 2007,the subprime crisis of United States caused the global financial turmoil.The current crisis has been a major blow to the global economy,and its far-reaching impact is still unpredictable.As for the root of the financial crisis,bad loan quality and out of control management are the main reasons for the bankruptcy of financial institutions.The financial crisis has sounded the alarm for our commercial banks,so we need to re-examine the current risk control model and measures of commercial banks in China.There are many reasons for the formation of non-performing loans in Chinese commercial banks.First of all,this paper states the theory and method of loan loss reserve,and then analyzes the market and industry in China in the past 5 years.Taking Z foreign commercial bank as the main example and selecting 4 more mainland banks with the annual reports from 2012 to 2016,thus,this paper compares the provision data,specific analysis method,and accounting policy,and to propose policy recommendations for selected bank to take impairment provision policy.In addition,I also make additional analysis of the risk point and Countermeasures of the off-balance sheet business in the current regulatory concern.After the revision of financial instruments standards,it is expected that the implementation of the credit loss model is also necessary for the bank to invest in human and material resources.This article will also analyze the implementation of the expected credit losses.