Theimpact Of New Financial Instrument Standards On Financial Performance Of Commerical Banks

As we all know,the global financial environment has been greatly affected by the sudden financial crisis in 2008,accompanied by strong doubts from domestic and foreign scholars about the financial asset impairment model and fair measurement and other accounting treatment methods.In order to solve these problems and keep pace with the times,in 2017,the IASB revised the relevant provisions on the basis of the old financial instrument standards,and issued the new financial instrument standards.Similarly,in 2017,China’s Ministry of Finance also improved the relevant provisions of the previous accounting standards and issued new financial instrument standards.The main adjustment contents of the new standard include two aspects: on the one hand,the classification and measurement of financial instruments;The other is the impairment model of financial assets.These two core changes undoubtedly have a huge impact on the financial industry,but commercial banks have played a leading role in China’s financial industry.Therefore,it is necessary for this paper to study the impact of the new standards on the financial performance of commercial banks.Starting from the changes of new financial instruments,this paper focuses on the two major changes of the new standards,namely,the classification of financial instruments and the change of the impairment model of financial assets.It focuses on the impact of these two major changes on the financial performance of China Construction Bank,thus outlining the impact of the new financial instrument standards on China Construction Bank.First of all,the theoretical basis of this study is introduced in detail.At the same time,we will make a comprehensive summary of the financial performance of commercial banks and the relationship between the new financial instrument standards and the financial performance of commercial banks.Secondly,it analyzes the impact of the core changes of the new financial instrument standards on China’s commercial banks and China Construction Bank.Then,by sorting out the data of China Construction Bank from 2016 to 2021,and through index analysis,comparative analysis and EVA numerical analysis,observe the data changes before and after the application of the new standards,and analyze the impact of the new financial instrument standards on the financial performance of China Construction Bank from the four aspects of asset quality,solvency,profitability,and development ability in combination with EVA numerical analysis.Finally,combined with the problems shown by the analysis data,the difficulties and bottlenecks of China Construction Bank in applying the new financial instrument standards are sorted out,and suggestions are put forward from two aspects of the core changes of the new financial instrument standards,which also provide reference for other commercial banks.The research significance of this paper is that China’s financial market is not mature at present.The implementation of the new standards has further standardized the order of China’s capital market,which can better ensure the orderly operation of the financial market,and also conducive to the work of regulators.Based on the rich theories at home and abroad,combined with the data of China Construction Bank before and after the implementation of the new standards,this paper analyzes the changes in the financial performance of commercial banks after the implementation of the new standards more objectively,so as to more accurately reflect the impact of the new standards on the financial performance of commercial banks.This provides a detailed reference for other banks in the process of implementing the new standards.