The idea of banks booking profits as their credit deteriorates does not sit comfortably with many people – even less so after this accounting concept, the debit value adjustment (DVA), generated combined earnings of $9.35 billion at five US banks in the third quarter of 2011. To critics, these numbers are fictitious, but truth is secondary to consistency for a senior risk manager at one US bank.
“I don’t care about truth in accounting rules. I have to use it, it goes into my reports, I’m charged
The week on Risk.net, March 10-16 2018Receive this by email