The Impact Of New Financial Instruments Standards On Bank Performance And Business Model

After the 2008 financial crisis,IAS 39 Financial Instruments: Recognition and Measurement(IAS39)received more criticisms,mainly because the classification and measurement of financial instruments were more complex and subjective,and the management of earnings management was larger.The accrual of the financial assets of the enterprise is not timely and insufficient,which affects the comparability of accounting information of financial instruments.In November 2009,in the guidelines issued by the International Accounting Standards Board,the classification rules for financial assets were changed,and the financial assets were changed from the four classifications in the original standard to the two classifications.In October 2010,the classification of liabilities was added;in November 2013,the IASB added the new standard to the hedging accounting measurement;in July 2014,a series of revised new standards,IFRS 9-Financial Instruments(IFRS9)will be finalized and will take effect on January 1,2018 in accordance with relevant regulations.China is keeping pace with the reform of international accounting standards.It requires that enterprises listed in China and overseas from January 1,2018,companies that are listed overseas and adopt IFRS to measure must use the new financial instruments guidelines.For confirmation,measurement and accounting.At present,China's financial institutions are dominated by the banking industry,while the banking industry takes the central bank as the core and commercial banks as the main body.Among the assets of commercial banks listed in China,financial assets account for the vast majority,and the implementation of the new standards will have a huge impact on commercial banks.China's financial institutions are mainly state-owned banks,with commercial banks as the core.At the same time,city commercial banks form important participants in China's financial market,and various financial institutions coexist.In China's commercial banks,financial assets account for a large proportion.If China and international accounting standards achieve convergence,then China's commercial banks will be greatly affected.Therefore,it is of great significance to analyze the similarities and differences between the old and new standards and propose feasible proposals for listed banks in view of the possible impacts.This paper analyzes the major changes brought about by the new standards by combining the development of financial instrument standards after the financial crisis and the research of experts and scholars at home and abroad.On this basis,taking Minsheng Bank as an example,the first financial statement issued by Minsheng Bank under the new standard,namely the quantitative test and qualitative analysis of the 2018 mid-year report,will be used to split and analyze the various assets of Minsheng Bank.After the implementation of the guidelines,Minsheng Bank was affected.At the same time,after analyzing the impact of Minsheng Bank's performance,the various businesses of Minsheng Bank were divided into three categories,namely,liability business,asset business and intermediary business.The characteristics of each business were analyzed and compared,and the new standards were summarized.The impact of the business.Finally,according to the possible impact of the new financial instrument standards,the paper proposes different aspects from the classification and measurement of financial instruments,the “expected impairment” model and the hedging accounting.The main conclusions of this paper are: the implementation of the new financial instrument standards has an impact on the performance of commercial banks in the short term,and the control is controllable in the long run;the implementation of the new financial instrument standards has a greater impact on the bank's asset business and intermediary business.The business has almost no impact.