The Impact Of New Financial Instrument Standards On Risk Management Of Commercial Banks

Based on the relevant research of new financial instrument standards at home and abroad,this paper briefly describes and compares the content and application of the old and new standards,and combs the current situation of loan and loan impairment provision of commercial banks in China.The analysis shows that the changes of the new financial instrument standards mainly focus on three aspects: the first is the change of the classification of financial assets,the second is the change of the relevant provisions of hedge accounting,and the third is the change of the impairment model of financial assets.Credit assets are the most important and risky assets of commercial banks.In the actual business of banks,whether each loan can be recovered is uncertain,which is rooted in the borrower’s default.Affected by information asymmetry and other factors,commercial banks cannot accurately predict the repayment ability of each borrower.Therefore,there is some uncertainty about when and where commercial banks withdraw the amount of impairment.This paper focuses on the impact of the changes in the impairment model of credit assets on the risk management of commercial banks in the new financial instrument standards.The research problems of this paper are mainly divided into three aspects:(1)This paper analyzes the main contents of the new financial instrument standards from the macro level.(2)From the micro level,the Bank of China is used to design two cases.First,combined with the report disclosure data and the expected credit loss model under the new standards,simulate the application of the expected credit loss model to withdraw the impairment of corporate loans,and deeply analyze the differences between the old and new standards;Second,using the limited basic data of grass-roots banks of commercial banks,do multi factor analysis of variance to test the relationship and effect between corporate loan credit elements and loan provision rate.In view of the implementation of the new financial instrument standards by the Bank of China,combined with cases,this paper analyzes the impact of the new standards on the risk management of commercial banks.(3)Based on the basic process of credit risk management,this paper puts forward its own suggestions on how to integrate the new financial instrument standards and improve the risk management level of commercial banks in the next step from the four aspects of risk identification,risk measurement,risk monitoring and risk control.