haku: @indexterm banking / yhteensä: 3069
viite: 10 / 3069
Tekijä:Kolasinski, A.C.
Otsikko:Mark-to-market regulatory accounting when securities markets are stressed: lessons from the financial crisis of 2007-2009
Lehti:Journal of Accounting & Economics
2011 : NOV, VOL. 52:2-3, p. 174-177
Asiasana:liquidity
banking
regulations
financial crises
securities
markets
Vapaa asiasana:fair value accounting
Kieli:eng
Tiivistelmä:While market prices can provide useful information for bank regulation, recent theoretical work argues that reliance on prices may be counterproductive if secondary markets are stressed and illiquid. Support from the financial crisis unearthed by Bhat et al. (in press) empirically validate these arguments. Though Bhat (et al.) do not fully recognize it, their findings suggest that forcing banks to count liquidity-induced unrealized losses in securities holdings against regulatory capital exterminates value and exposes bank creditors, taxpayers among others, to more risk. Policy makers contemplating greater regulatory reliance on market prices ignore this evidence at their peril.
SCIMA tietueen numero: 275411
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