Series: IMF Working Papers
Author(s): Luc Laeven , and Harry Huizinga
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 September 2009
Keywords: Key bank regulation, fair value accounting, corporate disclosure, real estate, real estate loans, tier 1 capital, bank assets, real estate loan,
This paper shows that banks use accounting discretion to overstate the value of distressed assets. Banks' balance sheets overvalue real estate-related assets compared to the market value of these assets, especially...