accounting standards

Claire Jones

In comments released today, Andy Haldane, the Bank of England’s executive director for financial stability, has called for “a radical rethink” of banks’ accounting rules, the reason being that the rules as they stand have done much to destabilise the financial system.

To date, accounting rules for banks have bent with the financial stability wind in ways which have amplified investor and regulatory uncertainty. To lean against the prevailing wind, accounting rules for banks may need to recognise more explicitly their differences.

As Mr Haldane notes, this is a debate that over the past century has been shaped by financial crises. Read more