BUS News

Professor Zhang Jian, Associate Professor in the Department of Accountancy, Economics and Finance at HKBU School of Business, has received the “Rising Star Research Grant 2025-26” from Hong Kong Baptist University. The grant is designed to support early- to mid-career faculty members in their research endeavors.

His project, “Bank Accounting, Financial Stability, and Sustainable Credit Markets”, tackles a question that affects everyone: how do new banking rules shape the way banks lend money, manage risk, and support economic growth?

At the heart of his study are two major accounting standards — Current Expected Credit Loss (CECL) in the United States and IFRS 9 worldwide. These rules require banks to estimate potential loan losses earlier, rather than waiting until borrowers default. The idea is simple: by spotting trouble sooner, banks can be more transparent and better prepared for tough times.

Professor Zhang’s research will explore whether this shift makes the financial system more stable and helps build healthier credit markets. He will also look at how these changes ripple out to businesses and everyday borrowers — influencing investment decisions, credit availability, and ultimately, economic growth.

Building on his strong track record, Professor Zhang has already published in leading journals such as Review of Accounting Studies and Contemporary Accounting Research. His earlier studies examined issues ranging from policy uncertainty and its impact on loan loss provisions to how credit information sharing can drive firm innovation.

The findings from this project are expected to shed light on how accounting rules connect to real‑world outcomes, offering valuable insights for both financial institutions and regulators.