Study On The Preparation Of Loan Commitment Impairment Under The Expected Credit Loss

In 2014,the International Accounting Standards Board(IASB),which formally promulgated the International Accounting Standard No.9th-Financial Instruments(IFRS9),has made major adjustments to IAS39,the most notable of which is the adjustment of the financial asset impairment model from the Expected Credit Loss model to the Expected Credit Loss model.And for the first time,the Loan Commitments,guarantees and other forms of external business are brought into the scope of impairment.In line with the principle of continuous and total convergence of international accounting standards,our country has fully accepted the above-mentioned adjustments in the relevant guidelines of the financial instruments issued in 2017,and started to implement the new guidelines on January 1,2018 as required by IFRS9.After the introduction of IFRS9,in the financial assets as the main content of the banking industry caused uproar,academia set off a study of the impact of the expected loss model on the banking industry.Scholars have focused on the bank’s main business-loan in the Expected Credit Loss model of the impairment problem.This paper analyzes the expected response of loan business under the Expected Credit Loss model and the measures to be taken by banks from Multi-angle,but the loan commitment business for the first time to be included in the scope of impairment is almost deserted.The Loan Commitment is a commitment made by a financial institution,such as a commercial bank,to provide a loan to a promise holder within a certain period of time.With the continuous development and innovation of the financial industry,the Loan Commitment of the business scale and proportion also increased year by 2016,the four major lines(ICBC,ABC,BOC,CCB)of the final Loan Commitments(including credit card commitments,hereinafter)The balance amounted to 5.91 trillion,and the ratio of total loans reached 13.27%,which has become one of the bank’s most important forms of external credit.Compared with the rapid development of business,information disclosure,risk control and other industry supervision is relatively lagging.In recent years,the research on the risk management and loss treatment of Loan Commitment business has attracted the attention of the industry,but it has not formed a unified opinion and special policy until the IFRS9 appears only to make clear that the Loan Commitment should be prepared according to the Expected Credit Loss model.However,this policy change has not received enough attention in the industry,leading to the impending implementation of the IFRS9 of the major banks on how the policy landed,how to deal with the impairment of the accounting remains confused.In order to fill the gap of current academic research and ensure the IFRS9 policy,it is very necessary and urgent to study the impairment preparation problem of Loan Commitment business under the Expected Credit Loss model.This paper is divided into six chapters;the first chapter will briefly introduce the background of the problem and research ideas.The second chapter introduces the research progress of the Expected Credit Loss model,Loan Commitment and other related topics at home and abroad,which leads to the significance of this paper.In the third chapter,we introduce the Expected Credit Loss model and the key theory and development status of the Loan Commitment,then draw up the research design of the impairment of Loan Commitment under the Expected Credit Loss model,and analyze the possible impact on the banking industry.The fourth chapter takes A Bank of Yunnan Province branch as a case,and set up a data model analysis of the Expected Credit Loss of Loan Commitment to the company’s operating and profit impact.The fifth chapter combines with the above analysis to summarize the influence of the change of the standard on the banking industry and puts forward some corresponding measures.The sixth Chapter summarizes the contributions and deficiencies of this study.