Regulation: Banks win greater accounting flexibility

Amendments made to accounting rules by the International Accounting Standards Board (IASB) in mid October could allow banks to write back billions in losses incurred in trading books.

While banks should be pleased with this development, it could end up being a pyrrhic victory as certain accounting experts say changing the rules will reduce transparency and possibly investor confidence. Deutsche Bank has already announced a surprise third-quarter profit of €435 million thanks to the accounting change

Banks have until November 15 to determine what assets to move out of their trading books. Part of the deal is that banks must provide detailed disclosure on the assets moved.

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