This paper examines banks' disclosures and loss recognition in the financial crisis and identifies several core issues for the link between accounting and financial stability. Our analysis suggests that, going into the financial crisis, banks' disclosures about relevant risk exposures were...

A large literature at the intersection of economics and finance offers prescriptions for regulating banks to increase financial stability. This literature abstracts from the discretion that accounting standards give banks over financial reporting, creating a gap between the information assumed...

The paper investigates the effects of mark-to-market write-downs by financial institutions on market prices and volumes, as well as the prominent role that illiquidity plays in exacerbating the direct and spillover effects of exit valuation on equity and credit default swaps markets. Using a...

This paper examines banks' disclosures and loss recognition in the financial crisis and identifies several core issues for the link between accounting and financial stability. Our analysis suggests that, going into the financial crisis, banks' disclosures about relevant risk exposures were...

We investigate the effect of executives and directors with prior banking crisis experience on bank outcomes around the global financial crisis (GFC). Executives and directors with previous experience leading banks through a bank crisis may have been uniquely able to understand the risks,...

During the Global Financial Crisis (GFC), state-owned or public banks lent relativelymore than domestic private banks in many countries. However, data limitations havehindered a thorough assessment of what led public banks to better maintain lendingduring the GFC. Using a novel bank-level...

I investigate whether fair value accounting can contribute to the banking industry's systemic risk. I focus on the adoption of SFAS No. 115, which required available-for-sale (AFS) securities to be recognized at fair value with unrealized gains and losses included in equity through accumulated...

Banks increased held-to-maturity (HTM) classifications over 500% between 2010 and 2016 to protect capital ratios from Basel III's expanded marking to market of fixed income portfolios. Accounting rules prohibit the sale of HTM securities, imbedding a tradeoff between regulatory capital stability...

Multiple factors have influenced interest margins and administrative costs such as prices effects, volume effects, the asset and liability mixes and the restructuring of the banking system. At the same time expansionary monetary policy led to a decline in both interest revenues and interest...

Retail deposits represent about 30% of total European banking assets. The bulk of the balance sheet of banks (about 70%) comprise non-retail loans and deposits (e.g. interbank loans and deposits, loans and deposits from insurance corporations and pension funds and loans and deposits from...