Accounting Research On Loan Loss Provision Of Commercial Banks In China

Since the reform and opening up,especially after China's accession to the WTO,China's economic openness continues to improve,the level of financial developed.With the continuous development of China's market-oriented economy and the deepening of financial reform,commercial banks have become increasingly important in economic activities.As an important participant in the market economy,commercial banks will face many risks in the process of operation and development.As an important part of modern commercial bank risk management,loan impairment attracts more and more attention of regulators and participants.The current loan impairment in China is issued by the Ministry of Finance in 2006 to prepare for the "enterprise accounting standards" provision,which is named by the present value and the book value of the future cash flow of the lower law provision.Compared with the previous five classes,it has certain science.Since 2007,China's commercial banks have begun to adopt this reasonable method to estimate the loan impairment reserve.Based on the above background,this paper studies the provision of loan loss reserve accounting in China's commercial banks.Firstly,according to the style of first domestic abroad after,the first domestic and foreign after,we study the framework of loan loss provisioning for literatures.Then according to the time clues carefully,we list the main course of development of China's commercial bank loan loss provisioning,and summarize loan loss provisioning regulations.As the development process and related system are discussed,we take the China's state-owned bank Z as an example,using the financial data of the bank from 2001 to 2015,with a combined method of case analysis and empirical analysis to Z bank loan loss reserves.By analyzing the loan loss provision we can not only control risk,but also ensure business development,sometimes loan loss provision should be cautious and reasonable.Then through the case study of Z bank and empirical analysis,combined with the status of other commercial banks loan loss provisioning,we find that China's commercial banks are questioned on loan loss provisioning,and we put forward corresponding countermeasures and suggestions to improve our country commercial bank loan loss reserve system.This chapter is based on the data of the Commercial Bank of Z bank from 2001 to2015,in addition to the financial report data in the year of 2015.By using the method of case analysis and empirical analysis,this paper analyzes the problem from two different angles.That is the vertical comparison and the quantitative model.