Procyclicality and Fair Value Accounting /

In light of the uncertainties about valuation highlighted by the 2007-2008 market turbulence, this paper provides an empirical examination of the potential procyclicality that fair value accounting (FVA) could introduce in bank balance sheets. The paper finds that, while weaknesses in the FVA method...

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書目詳細資料
主要作者: Scarlata, Jodi
其他作者: Novoa, Alicia, Sole, Juan
格式: 雜誌
語言:English
出版: Washington, D.C. : International Monetary Fund, 2009.
叢編:IMF Working Papers; Working Paper ; No. 2009/039
在線閱讀:Full text available on IMF
實物特徵
總結:In light of the uncertainties about valuation highlighted by the 2007-2008 market turbulence, this paper provides an empirical examination of the potential procyclicality that fair value accounting (FVA) could introduce in bank balance sheets. The paper finds that, while weaknesses in the FVA methodology may introduce unintended procyclicality, it is still the preferred framework for financial institutions. It concludes that capital buffers, forward-looking provisioning, and more refined disclosures can mitigate the procyclicality of FVA. Going forward, the valuation approaches for accounting, prudential measures, and risk management need to be reconciled and will require adjustments on the part of all parties.
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實物描述:1 online resource (42 pages)
格式:Mode of access: Internet
ISSN:1018-5941
訪問:Electronic access restricted to authorized BRAC University faculty, staff and students