Abstract
International accounting standards and the new capital adequacy ratio for banks : opportunities and threats The new international accounting (or financial reporting) standards (IAS or IFRS), together with the new prudential solvency ratio for banks (the MacDonough ratio), are just about to make it a whole new ballgame. Such new rules have emerged to reflect the changes affecting our global financial economy, and to rectify, to a certain extent, the inaccuracies pertaining to the previous rules, made obvious by the most recent financial crises. After revealing how such innovations carry an unambiguous improvement, the authors explain why the implementation of such new rules also conveys a fair amount of macro-financial risks. Inherent to the nature of the new standards are the risks of increased financial instability, and those of amplified credit procyclicality. Being aware of potential dangers should lead to further debate, in order to limit the most worrying effects of the new standards. JEL classification : G21, G28, M41
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