A global financial group has called for a re-think of the accounting rules which forced banks to take writedowns on the plummeting value of their assets in a volatile market.

The Institute of International Finance, a group of 375 financial services companies, has released a report recommending that banks improve their risk-management, disclosure and compensation practices, and ditch models which encouraged excessive risk-taking, to avert another crises in the global lending industry, the Wall Street Journal reported.

'We are resolved to do our utmost to clear our house first and not to leave it to the regulators to do it for us,' said Deutsche Bank chief executive, Josef Ackermann, who is chairman of the IIF.

In relation to risk management, off-balance sheet vehicles, and disclosure IIF co-chairman, Cees Maas said: '… we do not need additional regulation.'

The report could be debated at a G-7 meeting in Washington this weekend.

Further reading:

IMF calls for fair value review

Smoothed assets dismissed as a 'worse answer' to fair value

Credit crunch sparks fair value revolt