ESRB: Report on the macroprudential implications of Level 2 and 3 financial instruments for accounting purposes
25 Feb 2020
International
1 min read
ESRB’s report identifies three main areas where financial instruments measured at fair value can affect financial stability and thus have a macroprudential impact which relate to inaccurate valuations; possible volatility and illiquidity in times of stress and the inadequate reflection of underlying risks in the prudential framework.
