LEADER 06293oam 22012374 450 001 9910970438903321 005 20250426110745.0 010 $a9786612844133 010 $a9781462332557 010 $a1462332552 010 $a9781451873542 010 $a1451873549 010 $a9781282844131 010 $a128284413X 010 $a9781452734927 010 $a1452734925 035 $a(CKB)3170000000055351 035 $a(SSID)ssj0000940031 035 $a(PQKBManifestationID)11523030 035 $a(PQKBTitleCode)TC0000940031 035 $a(PQKBWorkID)10947096 035 $a(PQKB)11355904 035 $a(OCoLC)649536856 035 $a(IMF)WPIEE2009207 035 $a(MiAaPQ)EBC1608833 035 $a(IMF)WPIEA2009207 035 $aWPIEA2009207 035 $a(EXLCZ)993170000000055351 100 $a20020129d2009 uf 0 101 0 $aeng 135 $aurcn||||||||| 181 $ctxt 182 $cc 183 $acr 200 10$aAccounting discretion of banks during a financial crisis /$fLuc Laeven, Harry Huizinga 205 $a1st ed. 210 1$aWashington, D.C. :$cInternational Monetary Fund,$d2009. 215 $a41 p. $cill 225 1 $aIMF Working Papers 300 $aBibliographic Level Mode of Issuance: Monograph 311 08$a9781451917765 311 08$a1451917767 320 $aIncludes bibliographical references. 327 $aIntro -- Contents -- I. Introduction -- II. Tobin's q Value and Market Discounts -- III. The Data -- IV. Market Discounts and Valuation Effects of Real Estate Related Assets -- A. Empirical Evidence on Market Discounts -- B. Banks' Stock Price Reaction to Amendments of Fair Value Accounting Rules -- V. Accounting Discretion on Impaired Assets and Asset Classification -- A. Accounting Discretion on Accounting for Bad Loans -- B. Classification of Mortgage-Backed Securities -- VI. Conclusions -- References -- Appendix -- Variable Definitions and Data Sources -- Tables -- 1. Summary Statistics for 2008, Quarterly Data -- 2. Tobin's q and Real Estate Related Assets in 2008 -- 3. Tobin's q and Real Estate Related Assets in 2001-2007 -- 4. Tobin's q Real Estate Related Assets and Asset Size -- 5. Tobin's q and Additional Balance Sheet and Off-balance Sheet Items -- 6. Event Study of New FASB Rules on Fair Value Accounting for Illiquid Assets (FAS 157), Announced on October 10, 2008 -- 7. Event Study of FASB Amendments to Fair Value Accounting of Hard-to-Value Assets, Announced on April 9, 2009 -- 8. Loan Loss Provisions and Net Loan Charge-offs in 2008 -- 9. Share of Mortgage-backed Securities that is Held-to-Maturity in 2008 -- 10. Share of Non-Guaranteed Mortgage-backed Securities that is Held-to-Maturity in 2001-2007 -- Figures -- 1. Tobin's q and Share of Zombie Banks -- 2. Real Estate Loans and Mortgage-backed Securities -- 3. Share of Mortgage-backed Securities that is Held-to-Maturity -- 4. Fair Value of Mortgage-backed Securities Relative to Amortized Cost -- 5. Tier 1 Capital Ratio and Share of Tier 1 Capital in Total Capital. 330 3 $aThis paper shows that banks use accounting discretion to overstate the value of distressed assets. Banks' balance sheets overvalue real estate-related assets compared to the market value of these assets, especially during the U.S. mortgage crisis. Share prices of banks with large exposure to mortgage-backed securities also react favorably to recent changes in accounting rules that relax fair-value accounting, and these banks provision less for bad loans. Furthermore, distressed banks use discretion in the classification of mortgage-backed securities to inflate their books. Our results indicate that banks' balance sheets offer a distorted view of the financial health of the banks. 410 0$aIMF Working Papers; Working Paper ;$vNo. 2009/207 606 $aBanks and banking 606 $aAccounting$xCorrupt practices 606 $aAsset valuation$2imf 606 $aAsset-liability management$2imf 606 $aBanking$2imf 606 $aBanks and Banking$2imf 606 $aBanks and banking$2imf 606 $aBanks$2imf 606 $aDepository Institutions$2imf 606 $aFinance$2imf 606 $aFinancial Institutions and Services: Government Policy and Regulation$2imf 606 $aFinancial instruments$2imf 606 $aFinancial Risk Management$2imf 606 $aFinancial services law & regulation$2imf 606 $aGeneral Financial Markets: General (includes Measurement and Data)$2imf 606 $aIndustries: Financial Services$2imf 606 $aInternational Financial Markets$2imf 606 $aInvestment & securities$2imf 606 $aInvestments: General$2imf 606 $aLoan loss provisions$2imf 606 $aLoans$2imf 606 $aMicro Finance Institutions$2imf 606 $aMortgages$2imf 606 $aSecurities$2imf 606 $aState supervision$2imf 607 $aUnited States$2imf 615 0$aBanks and banking. 615 0$aAccounting$xCorrupt practices. 615 7$aAsset valuation 615 7$aAsset-liability management 615 7$aBanking 615 7$aBanks and Banking 615 7$aBanks and banking 615 7$aBanks 615 7$aDepository Institutions 615 7$aFinance 615 7$aFinancial Institutions and Services: Government Policy and Regulation 615 7$aFinancial instruments 615 7$aFinancial Risk Management 615 7$aFinancial services law & regulation 615 7$aGeneral Financial Markets: General (includes Measurement and Data) 615 7$aIndustries: Financial Services 615 7$aInternational Financial Markets 615 7$aInvestment & securities 615 7$aInvestments: General 615 7$aLoan loss provisions 615 7$aLoans 615 7$aMicro Finance Institutions 615 7$aMortgages 615 7$aSecurities 615 7$aState supervision 676 $a332.01 700 $aLaeven$b Luc$01795065 701 $aHuizinga$b Harry$0119267 712 02$aInternational Monetary Fund. 801 0$bDcWaIMF 906 $aBOOK 912 $a9910970438903321 996 $aAccounting discretion of banks during a financial crisis$94371497 997 $aUNINA