Banks bend rules in crises: IMF paper


Banks systematically inflated asset values and book capital through the use of malleable accounting techniques, finds a working paper published by the International Monetary Fund (IMF).

The paper, Accounting Discretion of Banks during a Financial Crisis, arrives at three conclusions. Using an event study methodology, it shows that banks with large exposures to mortgage-backed securities (MBS) reported large excess returns by taking a lax approach to fair value accounting rules.

Second, it proves

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

If you already have an account, please sign in here.

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: