The UK needs a well-functioning financial sector which supports sustained and inclusive growth of the real economy.
Accounting changes across the EU in 2005 not only allowed banks to under-provide for loan losses but also brought in mark to market (MTM) for valuing financial assets and liabilities, including financial instruments. Mark to market is rooted in the
In November 2012, the Bank of England released its autumn Financial Stability Report (FSR). Chapter two shows the market capitalisation of the banks is significantly lower than their reported asset values. This indicates market mistrust of the accounting numbers amongst