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Discussion Paper
What Happens When Regulatory Capital Is Marked to Market?
Minimum equity capital requirements are a key part of bank regulation. But there is little agreement about the right way to measure regulatory capital. One of the key debates is the extent to which capital ratios should be based on current market values rather than historical ?accrual? values of assets and liabilities. In a new research paper, we investigate the effects of a recent regulatory change that ties regulatory capital directly to the market value of the securities portfolio for some banks.
Report
Accounting for Debt Securities in the Age of Silicon Valley Bank
This note examines the mixed measurement accounting approach for debt securities under U.S. Generally Accepted Accounting Principles. It considers potential options for addressing the concerns with the accounting for held-to-maturity debt securities following the failure of Silicon Valley Bank.