The Case Analysis On The Credit Card Assets Depreciation Reserves Of XXBank

Assets depreciation reserves on bank industry mainly calculate reserves for impairmentof receivable account and receivable other. As new bussiness in bank industry, riskperformance and managing mode of creditcard are defferent from those in traditional bankingbussiness.At the end of2011, China Banking Regulatory Commission issued new creditcardlicenses. The volume of creditcard market becomes bigger and bigger. Creditcard is afinancial product with high profit and high risk. Banks need to build up mature system tomanage creditcard assets depreciation reserves management for the growing volume ofcreditcard bussiness and growing volume of creditcard assets, in order to enhance competitivecapability and vindicate financial security. However, the studies of assets depreciationreserves in China basically focus on traditional banking bussiness, lack of which in creditcard.Indeed, some creditcard center use traditional way of calculating reserves instead. It makesargument inside some banks for the risk calculating. So it is necessary to have special studieson creditcard assets depreciation reserves.First of all, this article induces documents of Assets depreciation reserves, and this articlehas reference to the main trend of creditcard assets depreciation reserves, expatiates oncalculating base, calculating ratio, calculating gist by the request of accounting standards.This article also provide the theory and analysing tools of the coming case studies.Then this article describes the industry background and base situation, introduces theway of calculating reserves for depreciation in XXBank particularly, and analysis the case.Finally, this article analysis some key issues involved in calculating process, calculatingresult of creditcard assets depreciation reserves. This article is trying to discover andsummarize problems by analysing the calculating base, calculating ratio, calculating way,system of modulation spring, in order to refined and summarized these reasons which mayprovide a reference for similar acquisitions and guidelines in the future.