Arbeitspapier
Monitoring complex financial instruments in banks' balance sheets
European banks have substantial investments in assets that are measured without directly observable market prices (mark-tomodel). Financial disclosures of these value estimates lack standardization and are hard to compare across banks. These comparability concerns are concentrated in large European banks that extensively rely on level 3 estimates with the most unobservable inputs. Although the relevant balance sheet positions only represent a small fraction of these large banks' total assets (2.9%), their value equals a significant fraction of core equity tier 1 (48.9%). Incorrect valuations thus have a potential to impact financial stability. 85% of these bank assets are under direct ECB supervision. Prudential regulation requires value adjustments that are apt to shield capital against valuation risk. Yet, stringent enforcement is critical for achieving this objective. This document was provided by the Economic Governance Support Unit at the request of the ECON Committee.
- ISBN
-
978-92-846-9938-4
- Sprache
-
Englisch
- Erschienen in
-
Series: SAFE White Paper ; No. 91
- Klassifikation
-
Wirtschaft
- Thema
-
Bank's Balance Sheets
Complex Financial Instruments
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Bischof, Jannis
Haselmann, Rainer
Tröger, Tobias
- Ereignis
-
Veröffentlichung
- (wer)
-
Leibniz Institute for Financial Research SAFE
- (wo)
-
Frankfurt a. M.
- (wann)
-
2022
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:42 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Bischof, Jannis
- Haselmann, Rainer
- Tröger, Tobias
- Leibniz Institute for Financial Research SAFE
Entstanden
- 2022
Ähnliche Objekte (12)
Monitoring complex financial instruments in banks' balance sheets
Balance Sheets
Financial instability and banks' balance sheets: A note
Intermediary balance sheets
Deadly Embrace - Sovereign and Financial Balance Sheets Doom Loops
Balance sheets, [...]. Balance sheets for institutional sectors and the total economy
Balance sheets of financial intermediaries: Do they forecast economic activity?
Business cycles and the balance sheets of the financial and non-financial sectors
Household balance sheets and economic crisis
MPC Heterogeneity and Household Balance Sheets
Fiscal consolidations and bank balance sheets
TARGET2 and central bank balance sheets
Monitoring complex financial instruments in banks' balance sheets
Balance Sheets
Financial instability and banks' balance sheets: A note
Intermediary balance sheets
Deadly Embrace - Sovereign and Financial Balance Sheets Doom Loops
Balance sheets, [...]. Balance sheets for institutional sectors and the total economy
Balance sheets of financial intermediaries: Do they forecast economic activity?
Business cycles and the balance sheets of the financial and non-financial sectors
Household balance sheets and economic crisis
MPC Heterogeneity and Household Balance Sheets
Fiscal consolidations and bank balance sheets
TARGET2 and central bank balance sheets
Monitoring complex financial instruments in banks' balance sheets
Balance Sheets
Financial instability and banks' balance sheets: A note
Intermediary balance sheets
Deadly Embrace - Sovereign and Financial Balance Sheets Doom Loops
Balance sheets, [...]. Balance sheets for institutional sectors and the total economy
Balance sheets of financial intermediaries: Do they forecast economic activity?
Business cycles and the balance sheets of the financial and non-financial sectors
Household balance sheets and economic crisis
MPC Heterogeneity and Household Balance Sheets
Fiscal consolidations and bank balance sheets