Research On The Inpact Of New Financial Instruments Accounting Standards On Commercial Banks

The Ministry of Financial revised and promulgated a series of financial instrument standards on 1th March 2017,such as the new Accounting Standards for Enterprises No.22 and No.23 and No.24.Banks listed on both the Hong Kong Stock Exchange and the Mainland Stock Exchange are required to implement the new guidelines at the beginning of 2018.The new standards have made great adjustments in the classification and measurement of financial instruments.The financial industry is the most affected by the changes of financial instruments standards,and banking industry is an integral part of the financial industry and the hub of the national economy.Therefore,this paper takes Bank of China as an example to explore how commercial banks,as the main body of the banking industry,are in line with a series of new standards,and commercial banks meet in the process of implementing the new standards.What are the difficulties and how will the implementation of the new financial instrument standards affect commercial banks?By comparing the old and new standards,studied the main changes of the financial standards.Firstly,analyzed the influence of the implement of the new standards to the banking industry.Through data collation,the author found that three classifications of financial assets of the new standard make major banks' equity instrument investments mainly classified as “FVTPL” financial assets,leading to a significant increase;the application of the expected credit loss model has prompted the banking industry to improve its a reasonable assessment of credit losses over a period of time has improved risk management capabilities;although the implementation of the new standard has caused large fluctuations in bank profits,it has also better demonstrated the bank's income structure to a certain extent.Under the influence of the standard,the net assets of banks will show a certain decreasing trend,but the capital adequacy ratios of the 11 “A+H” listed banks have not been affected much.Then take the bank of China as a case study object,summarizes the implementation of the bank of China for the new criteria.And according to the latest financial data which from financial statements,the quality of financial reporting,the operation and management of the Bank of China after the implementation of the new guidelines to do some research.Finally,the author puts forward suggestions on how to implement the new standards in China's banking industry in terms of coping strategies and development strategies: improving the construction of relevant informationsystems,improving risk management systems,adjusting investment strategies,strengthening collaboration and cooperation,and improving employment The quality of personnel.