04374oam 22011174 450 991078822670332120230721045713.01-4623-3255-21-4518-7354-91-282-84413-X97866128441331-4527-3492-5(CKB)3170000000055351(SSID)ssj0000940031(PQKBManifestationID)11523030(PQKBTitleCode)TC0000940031(PQKBWorkID)10947096(PQKB)11355904(OCoLC)649536856(MiAaPQ)EBC1608833(IMF)WPIEE2009207(EXLCZ)99317000000005535120020129d2009 uf 0engurcn|||||||||txtccrAccounting discretion of banks during a financial crisis /Luc Laeven, Harry HuizingaWashington, D.C. :International Monetary Fund,2009.41 p. illIMF Working PapersBibliographic Level Mode of Issuance: Monograph1-4519-1776-7 Includes bibliographical references.This paper shows that banks use accounting discretion to overstate the value of distressed assets. Banks' balance sheets overvalue real estate-related assets compared to the market value of these assets, especially during the U.S. mortgage crisis. Share prices of banks with large exposure to mortgage-backed securities also react favorably to recent changes in accounting rules that relax fair-value accounting, and these banks provision less for bad loans. Furthermore, distressed banks use discretion in the classification of mortgage-backed securities to inflate their books. Our results indicate that banks' balance sheets offer a distorted view of the financial health of the banks.IMF Working Papers; Working Paper ;No. 2009/207Banks and bankingAccountingCorrupt practicesBanks and BankingimfFinancial Risk ManagementimfInvestments: GeneralimfIndustries: Financial ServicesimfBanksimfDepository InstitutionsimfMicro Finance InstitutionsimfMortgagesimfFinancial Institutions and Services: Government Policy and RegulationimfInternational Financial MarketsimfGeneral Financial Markets: General (includes Measurement and Data)imfBankingimfFinanceimfFinancial services law & regulationimfInvestment & securitiesimfLoansimfLoan loss provisionsimfAsset valuationimfSecuritiesimfBanks and bankingimfState supervisionimfAsset-liability managementimfFinancial instrumentsimfUnited StatesimfBanks and banking.AccountingCorrupt practices.Banks and BankingFinancial Risk ManagementInvestments: GeneralIndustries: Financial ServicesBanksDepository InstitutionsMicro Finance InstitutionsMortgagesFinancial Institutions and Services: Government Policy and RegulationInternational Financial MarketsGeneral Financial Markets: General (includes Measurement and Data)BankingFinanceFinancial services law & regulationInvestment & securitiesLoansLoan loss provisionsAsset valuationSecuritiesBanks and bankingState supervisionAsset-liability managementFinancial instrumentsLaeven Luc1463965Huizinga Harry119267International Monetary Fund.DcWaIMFBOOK9910788226703321Accounting discretion of banks during a financial crisis3741571UNINA