Banking accounts volatility induced by IAS 39: A simulation model applied to the French case - HAL Access content directly
Conference papers Year : 2006

Banking accounts volatility induced by IAS 39: A simulation model applied to the French case

Abstract

The European Union's decision of adopting the International Accounting Standards for the whole of its countries members was deeply contested by the European banks. In fact, the banking industry was completely opposed to IAS 39 which treats the financial instruments. In order to demonstrate the impact of different accounting models for financial instruments on the financial statements of banks, we developed a simulation model capturing the most important characteristics of a modern universal bank. It demonstrates that under the current IAS 39, the results of a fully hedged bank may have to show volatility in income statements due to changes in market interest rates. However, results of a partially hedged bank in the same scenario may be less affected.
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Dates and versions

halshs-00151938, version 1 (05-06-2007)

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  • HAL Id : halshs-00151938 , version 1

Cite

Nessrine Ben Hamida. Banking accounts volatility induced by IAS 39: A simulation model applied to the French case. Congrès de l'AFFI juin 2006, 2006, Poitiers, France. ⟨halshs-00151938⟩
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Last update date on 5/25/24
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