BoE’s Haldane calls for separate rules for banks

THE BANK OF ENGLAND’S Andy Haldane has called for separate accounting rules that properly recognise banks’ assets and liabilities.

Haldane, executive director of financial stability at the BoE, argued that current international reporting standards are falling short.

“To provide point valuations of banks’ assets, as at present, is to ask auditors to pin the tail on a boisterous donkey. It risks giving a hit-and-miss evaluation of banks’ underlying solvency position,” Haldane wrote in article for Economia magazine.

“It is in the interests of auditors, as much as banks, their investors and regulators. Looking again at accounting rules for banks is part of a lasting solution.”

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Fiona Westwood of Smith and Williamson.