Are Banks Sweeping Dud Property Loans Under the Rug?

After the last financial crisis, accounting rule makers in the United States developed a new system for reporting credit losses to address the issue of banks failing or needing government bailouts despite seemingly healthy balance sheets. This new set of rules has been in place for over four years, but investors may question whether it is any more effective than the previous one.

After the last financial crisis, accounting rule makers in the United States developed a new system for reporting credit losses to address banks’ failures and government bailouts despite seemingly healthy balance sheets. This new set of rules has been in place for over four years, but investors may question its effectiveness compared to the previous system.