Research On The Impact Of The Implementation Of New Financial Instrument Standards On Credit Risk Management Of Rural Commercial Banks

In 2008,the U.S.subprime-loan crisis brought about by the U.S.economy became more and more apparent,and it also revealed the hidden risks of the financial organizations.At the same time,with the deepening trend of economic globalization,more frequent inter-bank cooperation,continuous exposure and manifestation of financial institutions’ risks,regulators,scholars and ordinary consumers have gradually attached importance to the risk management of financial institutions.On this basis,International Accounting Standards No.9(IFRS 9)was publish ed by the IASB in July 2014.To keep pace with IFRS,MOFCOM published Business Enterprises No.22-Recognizing and Measuring Financial Instruments and Accounting Standards for Business Enterprises No.23-Transfer of Financial Property in April 2017.Foreign and Chinese companies will be covered by the new regulations starting in 2018,whereas those with only Chinese stock will be covered by 2019,and those that do not do so before 2021.The Financial Instruments’ New Accounting Standards has brought about tremendous changes to the category and valuation of financial assets.Moreover,due to the requirement of the new mode,it is necessary for the commercial banks to keep a close eye on the variation of all kinds of risk data,and to estimate the value of the reserve value in time.The Party Five-Year Plan of the Fourteenth has made it clear that it is necessary to enhance the risk management in the financial organizations.Enhancing the capability of assessing and responding to risk is a precondition for the steady growth of the banking finance.So,it is essential to research on the application of the new accounting criterion,explore the problem and influence of it,and seek the appropriate measures.In this thesis,we firstly look back on the developing course of Chinese Financial Instrument Accounting Standards No.22,and compare the main differences among them.From 2021 onwards,study on how to apply the new Financial Instruments Accounting Standards.This article analyses the transformation of LX Rural Commercial Bank’s operation mode and finance information,and proposes the influence of implementing the new criterion to the credit risk management.This article gives advice to LX Rural Commercial Bank in order to make use of the new IFRS in order to improve its application.