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.
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