Research On Risk Management Of Small And Medium-sized Banks In T City Under The Background Of New Financial Instruments Standards

In the report of the 20 th Party Congress,the word risk has been mentioned several times,and it is clearly pointed out that many major issues still have to be resolved to prevent financial risks,to strengthen the financial stability protection system,and to guard the bottom line of no systemic risks.As of the end of 2022,the total asset size of the banking industry was 372.09 trillion yuan,of which small and medium-sized banks accounted for nearly 60%.Improving the risk management level of small and medium-sized banks is crucial to promoting the high-quality development of the banking industry.After the outbreak of the international financial crisis in 2008,the academic and practical circles have conducted in-depth reflection on the identification and measurement of financial instruments.All walks of life agree that the complexity and subjectivity of the classification of financial instruments,the narrow scope of the use of fair value,and the lag of impairment provision have amplified the pro-cyclical effect and accelerated the emergence of the global financial crisis to a certain extent.In this regard,the International Accounting Standards Board(IASB)issued ’ International Financial Reporting Standards No.9-Financial Instruments ’(IFRS9)in 2014.In March 2017,China ’s Ministry of Finance also issued revised ’ Accounting Standards for Business Enterprises ’ No.22,No.23 and No.24 three new financial instrument standards.The release of the new financial instrument standards has a profound impact on the banking industry,especially on the risk management of the banking industry.As the main force of serving local agriculture,rural areas and small and micro enterprises,local small and medium-sized banks are also the latest batch of banking institutions to implement new financial instrument standards.It is of great significance to explore the impact of new financial instrument standards on their risk management.This paper is divided into three parts : The first part is the first and second chapters,which mainly introduces the research background,the significance of the topic and the concept theory,and combs the research literature and achievements of the new financial instrument standards,including financial instruments,commercial bank risk and commercial bank risk management.The second part is the chapters 3 and 4,first briefly introduces the impact of the implementation of the new financial instruments standard on the risk management of small and medium-sized banks,followed by a detailed case study of small and medium-sized banks in T city,focusing on the current situation of operation,risk management,and the impact on risk management before and after the implementation of the new financial instruments standard,and selects the capital adequacy status,security status,market risk status and liquidity status as the main indicators to measure the regulatory risk of commercial banks,and analyzes the impact of the implementation of the new financial instrument standards on the risk management of small and medium-sized banks.After determining the relative importance of each index by AHP,the risk management evaluation system of small and medium-sized banks is built.By comparing the changes of various indicators before the implementation of the policy(2020)and after the implementation of the policy(2021,2022),it is concluded that the risk management level of small and medium-sized banks in T city has been improved after the implementation of the new financial instrument standards.The third part is the,Chapters 5and 6,summarizes the problems of small and medium-sized banks in T city in terms of risk management philosophy,organizational management structure,capital replenishment capacity,and risk management performance assessment.At the same time,it sorts out that after the implementation of new financial instruments in small and medium-sized legal entities banks in T city,the capital adequacy level has fluctuated,the credit risk prevention and control ability has been improved,the market risk management ability has been steadily improved,and the small and medium-sized banks have been more stable.The conclusion of the operation,and put forward four suggestions to ensure the accuracy of the measurement of asset impairment provision,accelerate the improvement of the accounting system of small and medium-sized banks,further improve the market risk management system,and strengthen the training and guidance of the operating level of the new financial instrument standards.