Accounting and management of business of commercial bank loans
     

 Liaoning University   Zhou Tong  Data collection)

    Significance and types, loan business
    1The concept
Loans or loan, is refers to the commercial banks to borrowers agreed by the rate and duration of repayment, interest payment of money. Loan is a main asset business in commercial banks,And it is the main form of bank funds.
    2, species
   (1According to the duration of the grant loan) can be divided into short-term loan, medium and long-term loan
   (2) loans according to whether a policy can be divided into commercial loans and policy loans;
   (3According to the sources and loan) loan risk. It can be classified as self and entrusted loans
   (4According to the principal and interest of loans) are overdue for more than a specified number of days can be divided into accrual loans and non accrual loans
   (5) can also according to guarantee loans can be divided into credit loans, secured loans and bills discounted.Loan secured by way of security can be divided into guarantee loans, mortgages and loans.

    (6) according to the loan quality and the degree of risk, can be divided into normal loans, interest loans, subprime loans, doubtful loans and loan losses. From the1998Year requires all commercial banks on loans5Classification management.

Normal loans to borrowers are able to perform the contract, fully grasp on time, in full repayment of principal and interest; interest loans to borrowers now have the ability to repay the principal and interest, but some may have an adverse effect on the repayment of factors; subprime mortgage refers to the borrower repayment ability is the obvious problem, depend on their normal income can not guarantee the repayment of principal and interest; doubtful loan refers to the borrower cannot repay the principal and interest in full, even if the execution of collateral or guarantees would cause some loss; loss loans refer to take all possible measures and all the necessary legal procedures, the principal is not recoverable or only a small portion can be recovered.

Two, the loan business accounting requirements

(a)According to the different categories of loans, formulate the corresponding Loan Accounting
 1Bank loans in accordance with the division. The different payment.

(1)Loan units can be divided into loan to deposit and payment transaction two.

Loan to deposit, refers to the borrower in the loan within the approved quota, according to the contract stipulation to fill in the loan to deposit certificates, loans or a sub sub deposited in the bank to open the account; the bank on loans and charge interest on the actual time deposit. Loan to deposit is a basic way of construction bank payment loans.
   By check payment, refers to the borrower in the approved loan target range, according to the actual needs of individual loan withdrawal; bank according to the actual amount of interest and the time spent collecting loans. By check payment loans only apply to construction bank orgnaization of government investment loans.
   2.Personal loans are divided into direct withdrawals and special drawing in two ways.
ATM, namely according to the loan contract the Borrower Loans transferred to open in the handling bank savings account.
Special drawing, namely according to the loan contract to transfer the loan directly transferred to the bank merchants (or school) in loansOpen a savings account.
    2Bank loans in accordance with the division. The different repayment method, can be divided into a one-time repayment and installment in two ways.
A one-time repayment, refers to the borrower in the loan maturity of disposable repaid the loan principal of the loan, the general said, temporary, short-term working capital loans are to take a one-time payment.
Amortization of loan refers to the loan borrowers, according to the provisions of the period time to repay the principal and interest payment. These loans usually monthly, quarterly, annual, long-term loans are mostly used in this way.
   (two) performing loans accounting procedures carefully
   (three) reflect the loan data, strict supervision of credit index

Three, the relevant provisions of the various loan business

(a),Provisions of the credit loan
1The loan application

The borrower to apply for credit loans, should be submitted to "loan application" to the bank, the application must be filled out in the loan amount, loan purpose, payment ability and the repayment methods, and provide the following documents to the bank: the basic situation of the borrower; the Department of finance or accounting(Audit)Firms approved annual accounting report, and apply for the financial and accounting reports of borrowing. Correction of the original unreasonable occupied loans; if the application of medium and long-term loans, you must also provide: the project feasibility report, the project started the preparatory work report, the bank deposit proof, proportion of funds provided by the right units issued the approval of the project investment plans or notice, in accordance with the provisions of the project completed and put into production for self flowing funds and materials of proof.
   2Signing the approval and loan contract of loan
Approval of bank credit department should be in accordance with the censoring, grading approval of the loan management system for loans. The examination and approval of loans, the bank(The Lender)Should sign a loan contract with the borrower, the contract should specify the type of loan, loan amount, interest rate, the repayment period, repayment methods, the liability for breach of contract, and other matters deemed necessary by the parties.
   (Two)The provisions of the loan guarantees
The borrower to apply for loan guarantees in addition to the "loan application" and other materials to the bank according to the general procedure, also should provide the guarantee the basic conditions and guarantee the people to agree to related documents guarantee. The credit department approved and agreed to loan, banks and guarantee signed a guarantee contract. The guarantee contract should be clear that borrowers, between man and the Bank of three party rights and obligations. The effective review contract guarantee should pay attention to the following aspects:
   1The guarantor is guarantee qualification. "Guarantee law" stipulates: the guarantor must be a legal person, have the capacity to pay off debts and other economic organizations or citizens.
   2. guarantor's financial strength and intention guarantee. The bank signed a guarantee contract, should understand the intention guarantee and the guarantor guarantor's past performance guarantee agreement records. If there is bad record, to ensure the effectiveness of the cautious attitude. In addition, the bank should also review the guarantor's financial strength, including the guarantor's financial situation, cash flow, or a debt; credit rating and the guarantee of quantity and amount. Only have a guarantee of financial strength, and that will guarantee the talent can undertake suretyship liability.
   3Ensure that the relationship between people and the borrower. The guarantor is generally the borrowing enterprise shareholders, partners, the parent company to do business with the company and etc.. Ensure that between man and borrowers often have different degrees of economic relations, therefore, special attention should be paid to rely entirely on guarantee loans, to prevent fraud.
   4The legal responsibility to ensure that. Banks and guarantee the people to sign the guarantee contract, should be noted as a suretyship of joint and several liability. The range includes the principal claim and interest, liquidated damages, damages and claims costs. In addition, the guarantee period should also be clear.
   (Three)Provisions of the mortgage loans
   1The loan application
The borrower to apply for the loans, should fill out the "pledge or mortgage applications" indicate the matter, and of the name, quantity, price, quality, and at the same time to the bank to provide quality, and bill of material and the disposition of the consent of pledge, mortgage. The remaining information and credit loans are basically the same.
Can be used to mortgage the property, including the following five categories: ① mortgage all the houses and other fixed objects on the ground; the mortgagor all machines, transportation vehicles and other property; the mortgagor has the right to dispose of the use right of state-owned land, houses and other things firmly fixed on the mortgagor; in accordance with the contract and the right to use the contract letting party agreed to mortgage the barren hills, barren, barren hills, wasteland, wasteland land; state machines, means of transportation and other property of the mortgagor has the right to dispose of according to law.
   2Provisions of the mortgage loan management
　　1.Strict selection of collateral. Bank loans, the mortgage choice should comply with the following principles: price changes smaller; easy to sell; easy storage, non perishable damage; easy identification and valuation; in the mortgage houses and other fixed structures, machinery and equipment, vehicles and other property shall participate in property insurance.
　　2.Careful verification certificate of property rights. For the pledged property shall carefully examine the relevant property documents, ensure the authenticity, validity of certificates of property rights, to prevent fraud, to ensure the safety of loan.
　　3.Accurate assessment of the value of the mortgaged property. The value of the mortgaged property can be determined by the loan negotiation. The entrusted assets assessment agencies to assess the qualifications of the necessary, the state-owned assets of the needed by the state-owned assets administration to assess the results of confirmation.
　　4.Determine the mortgage rate reasonably. Mortgage rates are estimated to be collateral in the collateral during the treatment cost depreciation factors, natural or economic of statutory and contractual deductions value and the present value ratio. Mortgage rates can be determined in consultation, can also be compliance.
　　5.A complete list of collateral list. "Collateral" list in three copies, each a mortgage contract.
　　6.Registration and safekeeping of good collateral. "Guarantee law" requirement to register the mortgaged property must be registered. Collateral custody by the debtor, the creditor should always check the collateral maintenance and preservation, ensure the intact.

   (Four)The provisions of loan
Can be used for the pledge of movable property or rights, including the following four categories: ① goods, such as business or private ownership of the goods; the draft, promissory notes, cheques, bonds, certificates of deposit, warehouse receipts, bills of lading and other rights certificate; ③ negotiable shares, stock; exclusive trademark rights, patent rights, transferable according to law, copyright.
   (Five)Offset(Matter)Signed a pledge loan approval and loan contract
Review the bank except for examination and approval according to the credit loan procedures, should also be the nucleoplasm, collateral. After the examination and approval, shall be borne by the mortgagor(Or the pledgor)Mortgage contract signed with the bank(Or the pledge contract)In accordance with the law, and the registration.

Four, loan interest calculation
(a) the relevant provisions of the loan interest calculation

1Calculation of interest, short-term loans

Short term loans (for less than a year, including one year), according to the corresponding grade loan contract signing date of the official lending rates. Loan contract period, in the interest rate adjustments are not above.
   Short term loans quarterly bear interest, the last month of each quarter20Day JieXi day; monthly settlement, monthly20On settlement day. The specific settlement methods determined by both parties of the loan negotiation. On't loan period pay interest on the loan contract interest rate quarterly or monthly collection of compound interest, overdue loans impose a punitive interest rates after the change in the recovery of profits. Finally, a loan to pay the debt, with the benefit of clear.
   2In the calculation, the long-term loan interest
Long term loans (a term of more than one year) interest rates to a certain year. Loans (including loans effective date of the contract within a year all funds allocated sub pen) according to the loan contract period determined by the date of entry into force of the loan contract, according to the corresponding grade legal loan interest rate, after each full year (sub pens allocated to the first loan payment date to date), then according to the corresponding grade legal loan interest rates next year to determine the interest rate.
Long term loans quarterly bear interest, the last month of each quarter for twenty days to bear interest. On't loan period pay interest on the contract interest rate on a quarterly or compound interest, overdue loans impose a punitive interest rates after the change in the recovery of profits.
   3According to the date, discount discount discount rate disposable charging interest
   4The extension of the loan term, , accumulated, the cumulative period reached a new term grades, since the renewal date, according to rollover date listing of the same grade rate of interest; not up to the new period of the grade, according to the rollover date the original level interest rate.
   5Overdue loans, or loans from misappropriation and diversion, misappropriation or overdue date, impose a punitive interest by impose a punitive interest rate of recovery of principal and interest, until the settlement date, impose a punitive interest rate adjustment in sub bearing. During the diversion of loans overdue or fails to pay the interest according to the penalty interest rate quarterly (monthly short-term loans can be) the recovery of profits. As a loan is overdue and misappropriation and diversion, should choose the heavy, cannot be.
   6, the borrower in the contract expiration date repays the loan, the lender shall have the right to charge borrowers interest according to the original loan contract.
    (two) the calculation of interest on loans
     1Methods of interest calculation node information regularly
Regular node information refers to the bank in the month or the last month of each quarter20At the end of business, according to the loan account balance table to calculate the cumulative loan product(Loan number calculation method and deposit interest method from the same)Registration, loan interest subjects from table, calculate the interest according to the provisions of the interest rate. Regular node interest days according to the calendar days, one day at a time, throughout the year by365Day or366The day. The head is not tail, namely from the lending of the day, to the repayment of the day check. Including interest settlement date shall be calculated on the settlement day.
The formula for the
Loan interest=Cumulative loan charge number * daily interest rate
An example4-1In: a5Month2Payment on a short-term loan, the amount of20Million yuan, assumed interest rate4Per thousand, deadline4Months, then:
   16Month20Japan Bank quarterly bear interest, accrued interest for the loan:
　　200000Yuan x50Day *4%30=l333.33 (Element)
②6Month21To9Month2Date of repayment, the loan interest accrued as:
　　200000*73*4%30=1946.67 (Element)
Ruo6Month20Japanese banks failed to receiveL333.33Yuan interest, the maturity date of repayment, the loan interest accrued as:
　　L333.33+(200000 + L 333.33) *73*4%30=3292.97 (Element)
   2. basis with the benefit of clear
It refers to the bank should be in the borrower repayment, the loan repayment before the date days one day stop lending, loan interest calculation.
Full year loans on an annual basis, the full moon on a monthly basis, throughout the year(Month)And the fraction number can be turned to calculate. All the year round by360Day, month according to the30The day, a fraction of a day.
The calculation formula is as follows:
Loan interest=Loan amount x days * daily interest rate loan
   (three) the accounting treatment of loan interest
   Bank accounting department to calculate the accrued interest, shall prepare a summons, all to "receivable" account. The accounting entries for the:
Borrow: interest receivable -- * * unit households
Loan: the interest income -- * * loan interest income
Then according to the calculation of interest by the borrower for filling in triplicate loan interest notice. If the borrower accounts have enough balance to the payment of interest on loans, the loan interest payment notice single linked as notification, another two were used instead of debit and credit voucher for the transfer. Bank accounting entries for the:
Borrow: demand deposits -- * * unit of account
Credit: interest receivable -- * * unit households
If the borrower account without payment, within the term of the contract, the bank accounting department should be in accordance with the relevant provisions of the recovery of profits, to the borrowing unit deposit sufficient account balance to the payment of interest on loans, banks also deduct. Accounting entries for the:
Borrow: demand deposits -- * * unit of account
Credit: interest receivable -- * * unit households
On the expiration can't repay the loan, the bank should be in accordance with the provisions of the additional penalty.
An example4-2In: a6Month28On a short-term loans, the amount of20Million yuan, deadline3Months, interest rate6%, if the loan to10Month11To repay, the banks accrued interest for:
The due loans interest accrued:
　　　200000*85*6%30+ (200000+200000*85*6%30.*7*6%30= 3684.76 (Element) 

Note: in the example of the interest calculation:85Days6Month28To9Month20Day,7Days9Month21To9Month28Day.
If loans overdue penalty interest rate was 4/10000 per day, is overdue penalty for:
(200000 +3684.76) *13*4%O=1059.16 (Element)
    Note: for missed payments, bank regulations, from the date of expiration, according to the loan principal and interest, and interest rate, days receivable interest calculation.
    (four) non accrued interest calculation
Non accrual loans refer to loans overdue principal or interest90Days without loan. Accrued loan refers to the non accrual loans other than loans. When the principal or interest loans overdue90Day, should be transferred to the "non accrual loans" single accounting subjects.
When accrual loans to non accrual loans, should be posted on interest income and interest receivable shall write off. From the accrual loans to non accrual loans, on receipt of the loan repayment, should first down principal, principal back part is recognized as interest income of the current period.
Non accrual loans from the medium and long-term loans separate accounting, is conducive to the commercial bank accounting information users fully understand the asset quality of commercial banks.
Example: a line in2000Years5Month18To theACompany loans a pen, the amount of50Million, for a period of2Years, the annual rate of6%,2001Years12Month20Days before the,AThe company has been able to pay the interest on time, to2002Years3Month20Day and bear interest2002Years5Month18Day maturity,ACompany accounts without payment reimbursement, until2002Years12Month18Only once the loan principal repaid. Overdue loans impose a punitive interest at 4/10000. The loan is the accounting process:
When the loans:
Borrow: long-term loans --ACompany loans to households500000
Credit: demand deposits --ACompany500000
The normal node interest at:
　　　　A,2000Years6Month20Day
　　　　500 000Yuan x44Day *6%÷360 3666.67.Element)
　　　　B,2000Years9Month20To2001Years9Month20Day5A settlement date settlement.
　　　　500 000*91(2) *6%÷360= 7583.33Element7666.67Element)
Borrow: demand deposits --ACompany
Credit: interest income -- long term loan interest income
From the2001Years9Month21To2001Years12Month20Day JieXi day, bank quarterly bear interest when the loan interest accrued as:
　　　　500 000*6%*91÷360= 7 583.33Element
Borrow: interest receivable --ACompany7583.33Element
Credit: interest income -- long term loan interest income7583.33Element
The deduction of interest:
Borrow: demand deposits --ACompany7583.33Element
Credit: interest receivable --ACompany7583.33Element
④2002Years3Month20Day JieXi day, bank quarterly bear interest when the loan interest accrued as
　　　　500 000*6%*90÷7500 (360=Element)
Borrow: interest receivable --ACompany7 500
Credit: interest income -- long term loan interest income7500
52002Years5Month18On the maturity of the loan interest accrued as:
(500 000+ 7500) *6%*58÷360=4 905.83 (Element)
Accounting entries for the:
Borrow: interest receivable --ACompany4905.83
Interest income -- long term loan interest income7500
Credit: interest income -- overdue loan interest income12 405.83
At the same time, the loan to the overdue loans subjects, and began calculating interest rate by day 4/10000 penalty. Accounting entries for the:
Borrow: overdue loans --ACompany of overdue loans to households500000
Borrow: long-term loans --ACompany loans to households500000.The scarlet letter)
According to the2002Years6Month18Day, because the interest has been overdue for more than90Day (from3Month21To6Month18Day), it should be in the6Month19Days overdue loans -- "ACompany of overdue loans to households "to" non accrual loans --ACompany of overdue loans households "subject single Independence Accounting, sterilization has ledger receivable outstanding interest, interest into balance sheet accounts.
Accounting entries for the:
Borrow: non accrual loans --ACompany of overdue loans to households500 000
Borrow: overdue loans --ACompany of overdue loans to households500 000 (The scarlet letter)
Borrow: interest receivable --ACompany12 405.83 (The scarlet letter)
Credit: interest income -- overdue loan interest income12405.83.The scarlet letter)
Off balance sheet credit: poor -- poor overdue loan interest90More days of loan interest12405.83
⑦2002Years6Month20Day, the bank quarterly bear interest.
(500 000 + 12405.83) *4%O*34 (968.72 = 6Element)
Off balance sheet credit: poor -- poor overdue loan interest90More days of loan interest6 968.72
　　　　2002Years9Month20Day, the bank quarterly bear interest.
(500 000 + 12405.83 +6 968.72) *4%O*112.98 (92=19Element)
Off balance sheet credit: poor -- poor overdue loan interest90More days of loan interest19112.98
⑧2002Years12Month18Day, the loan principal repaid.
　　　2002Years9Month21To2002Years12Month18For the interest of the day:
(500000+ 12405.83+6968.72 +19112.98) *4%O*88)=18954.76 (Element)
Off balance sheet credit: poor -- poor overdue loan interest90More days of loan interest18954.76
Receive interest, shall be offset against the principal.
Accounting entries for the:
Borrow: demand deposits --ACompany500000
Credit: non accrual loans --ACompany of overdue loans to households500000
The deduction of interest:
Borrow: demand deposits --ACompany57442.29
Credit: interest income -- overdue loan interest income57442. 29
At the same time, according to the actual interest received offset table external account.
Sheet debit: poor -- poor overdue loan interest90More days of loan interest57442.29

Prepare five, loan loss accounting
(A), the relevant provisions for loan losses accrued

1.1998Years, according to the Ministry of finance "on the revision of financial institutions interest receivable accounting periods and bad debt reserve extraction approach of the notice" provisions, from1998Years1Month1Date, loan reserve for bad debts by early loans1%The difference between the extraction by loans at the end of the year (excluding loans and interbank borrowing, including mortgage loans)1%The difference between the extraction, and shall be allocated from the cost, reserve loans when the verification to fill carry in the next year; more than the proportion of the actual bad debt of financial enterprises1%Part of the year, full fill the loan loss reserves.

2.2001Years5In March, the Ministry of Finance issued "financial enterprise reserve for bad debts and bad debts management approach". This approach, in the following several aspects to better reflect the accounting prudence principle: first, expand the scope of the provision. Commercial banks to establish a unified system of assets provision for doubtful debts, bad debts provision of extraction including almost every asset to bear the risks and losses. Include loans, overdrafts, discount, advances, interbank lending projects. Commercial banks no longer extraction for bad debts and reserve for investment risk, not a separate declaration to write off bad debts losses and investment losses. Second, increase the percentage of. Commercial banks can be extracted according to the bad debt reserve asset risk size determination for bad debts provision. Bad debt reserve balance at the end of the highest extraction of bad debt reserve assets final balance100%For extraction of bad debt reserve assets, the lowest final balance1%.1-100%What gauge between large proportion of Titus, by commercial banks to decide. At the same time, bad debt provision must be based on the risk of asset and adequate provision, bad debt provision is insufficient, not after tax profit distribution. Thirdly, according to the original currency reserves. The renminbi assets denominated in foreign currency assets provision. The RMB and foreign currency loans accounted for separately and reflect. This is conducive to better to avoid exchange rate risk.

(two), bad debt losses accounting
1, accounting for loan losses

In order to extract the accounting and supervision of loan loss provision and use, strengthening the bad loan write off management, should be set to "loan loss provision" subjects. The number of subjects debit to reflect the write offs of loans, credit to reflect the number of extraction of loan loss provisions, balance in credit, ready to have been extracted from the loan loss.
When extracting the accounting entries for loan loss reserve:
Borrow: operating expenses -- provision for loan losses
Loan: loan loss reserve
Offset loan losses when the accounting entries for the:
Loan: loan loss reserve
Operating expenses -- Loan: loan loss provisioning
　　2, accrual method
First, the general provision
Example: a commercial bank2001Years1Month1Date should be extracted from the loan loss provision of loans outstanding100Billion yuan, loan loss reserve balance of one hundred million yuan.2001Years1--6Month, the write off bad debts3000Million yuan.6Month30Day, the bank should loss reserving loan balance120Billion yuan.6-12Month back the verification1000Million yuan,2001Years12Month31Day of the line should be in loss reserving loan balance110Billion yuan.
Then6Month30The bank should provision for loan losses for:
　　　　120*1%- (1-0.3)=0.5(100 million yuan)
Accounting entries for the:
Borrow: operating expenses5000Million
Loan: loan loss reserve5000Million
　　　12Month31The bank should provision for loan losses for:
　　　　1.1*1%-(1+0.2) =-0.1.Billion yuan)
Accounting entries for the:
Loan: loan loss reserve1000Million
Credit: operating expenses1000Million
Second, special provision:
For such loans, provision for2%; for subprime loans, provision for25%; for doubtful loans, provision for50%; for the loss class loan, the provision for100%. Among them, ready to secondary and doubtful loan loss provision, can float up and down20%.
Example: a commercial bank2001Years3Month31Day loan balance100Billion yuan, according to the five grade classification as follows: normal loans70Billion yuan, concerned about the type of loan24Billion yuan, such as secondary3Billion yuan, doubtful loans for2Billion yuan, the loss class loan1Billion yuan.2001Years6Month30Day loan balance120Billion yuan, according to the five grade classification as follows: normal loans80Billion yuan, concerned about the type of loan30Billion yuan, such as secondary6Billion yuan, doubtful loans for3Billion yuan, the loss class loan1Billion yuan.
　　　2001Years3Month31Its accrual of special preparation for:
　　　24*2%+3*25%+2*50%+1*100%=3.23(100 million yuan)
　　　2001Years6Month30Its accrual of special preparation for:
(30*2%+6*25%+3*50%+1*100%)-3.23 =1.07(100 million yuan)
   (three), loan loss reserve verification
   1The relevant provisions of the loan loss provisions, cancel after verification

Commercial banks in the actual bad debt losses, according to the provisions for bad debt write off, the scope of the examination and approval authority and approval process, to be written off from the loan loss provision in. According to the financial system, financial and insurance enterprises shall, following uncollected loans can be classified as bad debts: the borrower and guarantor has been declared bankrupt according to law, by a legal settlement still fails to return the loan borrowers; the death, to the legacy of the borrowers fail to repay the loan; people suffer from serious natural disasters or accidents, huge losses and without insurance compensation, is unable to repay part of, or an insurance compensation after failing to pay off the loan: the project approved by the State Council verification of overdue loans.
   2, accounting verification of the loan loss reserve
The write offs loans accounting entries for the:
Loan: loan loss reserve
Credit: overdue loans -- * * unit overdue loans to households
Has been confirmed and the swivel pin dud loans, subsequent annual and back to increase the amount of the provision for doubtful debts, the accounting entries for the:
Borrow: overdue loans -- * * unit overdue loans to households
Loan: loan loss reserve
Should be back at the same time should be in the borrower deposits account deduction of overdue loans, the accounting entries
Borrow: demand deposits -- * * unit of account
Credit: overdue loans -- * * unit overdue loans to households

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