Complex instruments still pose systemic risks – paper
Discretion granted by financial reporting standards increases opacity and complexity, say authors
European banks still face major risks from their holdings of complex financial instruments, argues a research paper published by the Bank of Italy.
Financial reporting standards grant banks considerable discretion to assess their own holdings of complex financial instruments. But this discretion increases the opacity and complexity of the risks presented by these instruments, it argues.
Risks and challenges of complex financial instruments: an analysis of SSM banks notes that the difficulty of
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