Skip to main content
SpringerLink
Log in

Market—Value Accounting by Banks: Benefits, Costs and Incentives

  • Chapter
Restructuring the American Financial System

Abstract

On February 13, 1989, the Shadow Financial Regulatory Committee issued Policy Statement Number 41 on “A Program for Deposit Insurance and Regulatory Reform.” In part, the statement urged that “the reorganization rules should be based on market values to minimize risks to the insurance funds and to allow both the regulators and the banks to take informed actions.” The complete statement is provided in the appendix.

Helpful suggestions by Edward Kane and Leonard Simon are gratefully acknowledged.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 109.00
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Ball, R. and Phillip B. 1968. An Empirical Evaluation of Accounting Income Numbers. Journal of Accounting Research, (Spring) 159–78.

    Google Scholar 

  • Beaver, W.H., Christie, A.A., and Griffin P.A. 1980. The information content of SEC Accounting Series Release No. 190. Journal of Accounting & Economics, Aug. 127–158.

    Google Scholar 

  • Beaver, W.H. and Ryan, S.G. 1985. How Well Do Statement No. 33 Earnings Explain Stock Returns. Financial Analysts Journal, No. 5, 66–71.

    Article  Google Scholar 

  • Bell, T.B. 1983. Market Reaction to Reserve Recognition Accounting. Journal of Accounting Research. (Spring), 1–14.

    Google Scholar 

  • Benston, G.J. 1967. Published Corporate Accounting Data and Stock Prices. Journal of Accounting Research, Empirical Research in Accounting: Selected Studies. 1–14, 22–54.

    Google Scholar 

  • Benston, G.J. 1979. Required Periodic Disclosure Under the Securities Acts and the Proposed Federal Securities Code. University of Miami Law Review, 33, (Sept), 1471–84. (Also reprinted in the Journal of Accountancy, (Oct.) 1980, 34–45.)

    Google Scholar 

  • Benston, G.J. 1982. Accounting Numbers and Economic Values. The Antitrust Bulletin. (Spring) 161–215.

    Google Scholar 

  • Benston, G.J. 1985. The Market for Public Accounting Services: Demand, Supply and Regulation. Journal of Accounting and Public Policy, 4 (Spring), 33–79. (Previously published in The Accounting Journal, 2, 1979–80, 1–46.)

    Google Scholar 

  • Benston, G.J., Brumbaugh, R.D., Jr., Guttentag, J.M., Herring, E.J., Kaufman, G.G., Litan, R.E. and Scott, K.E. 1989. Blueprint for Restructuring America’s Financial Institutions. Washington, DC.: The Brookings Institution.

    Google Scholar 

  • Benston, G.J., Eisenbeis, R.A., Horvitz, P.M., Kane, E.J. and Kaufman, G.G. 1986. Perspectives on Safe and Sound Banking: Past, Present, and Future, Cambridge, MA.: MIT Press.

    Google Scholar 

  • Benston, G.J. and Kaufman, G.G. 1988. Risk and Solvency Regulation of Depository Institutions: Past Policies and Current Options. Monograph Series in Finance and Economics: Salomon Brothers Center for the Study of Financial Institutions, Graduate School of Business Administration, New York University, Monograph 1988–1. (A shorter version, “Regulating Bank Safety and Performance,” appears in William S. Haraf and Rose Marie Kushmeider, eds, Restructuring Banking and Financial Services in America, Washington, DC.: American Enterprise Institute 1989, 63–99 ).

    Google Scholar 

  • Benston, G.J. and Krasney, M.A. 1978. DAAM: The Demand for Alternative Accounting Measurements. Journal of Accounting Research, 16, 1–45.

    Article  Google Scholar 

  • Biddle, G.C. and Lindahl, F.W. 1982. Stock Price Reactions to LIFO Adoptions: The Association Between Excess Returns and LIFO Tax Savings. Journal of Accounting Research, (Autumn) 551–88.

    Google Scholar 

  • Bruner, R.F. and Simms, J.M. 1987. The International Debt Crisis and Bank Security Returns in 1982. Journal of Money, Credit and Banking, (Feb.) 46–55.

    Google Scholar 

  • Federal Home Loan Bank Board. 1982. Annual Report, Washington, DC.

    Google Scholar 

  • Gheyara, K. and Boatsman, J. 1980. Market reaction to the 1976 replacement cost disclosure. Journal of Accounting & Economics, (Aug.) 107–126.

    Google Scholar 

  • Hagerman, R.L. 1972. The Value of Regulation F: An Empirical Test. Journal of Bank Research, (Autumn,) 178–91.

    Google Scholar 

  • Hong, H., Robert S. Kaplan and Gershon Mandelker. 1978. Pooling vs. Purchase: The Effects of Accounting for Mergers on Stock Prices. Accounting Review, (Jan.) 31–47.

    Google Scholar 

  • Kane, Edward J. 1989. The S&L Insurance Mess: How Did It Happen?, Washington, D.C.: The Urban Institute Press.

    Google Scholar 

  • Kaplan, R.S. and Roll, R. 1972. Investor Evaluation of Accounting Information: Some Empirical Evidence. The Journal of Business, (Apr.) 225–45.

    Google Scholar 

  • Lustgarten, S. 1982. The Impact of Replacement Cost Disclosure on Security Prices. Journal of Accounting & Economics, (Oct.) 121–141.

    Google Scholar 

  • McDonald, B. and Morris, M.H. 1984. The Relevance of SFAS 33 Inflation Accounting Disclosures in the Adjustment of Stock Prices to Inflation. The Accounting Review, (July) 432–46.

    Google Scholar 

  • Mengle, D.L. 1989. The Feasibility of Market—Value Accounting for Commercial Banks. Federal Reserve Bank of Richmond, working paper.

    Google Scholar 

  • Rick, W.E. and Hughes, J.S. 1985. Market Reactions to a Nondiscretionary Accounting Change: The Case of Long—Term Investments. The Accounting Review, (Jan.) 33–52.

    Google Scholar 

  • Ro, B.T. 1980. The adjustment of security returns to the disclosure of replacement cost accounting information. Journal of Accounting & Economics, (Aug.) 159–189.

    Google Scholar 

  • Shadow Financial Regulatory Committee. 1989. An Outline of a Program for Deposit Insurance and Regulatory Reform. Statement No. 41, (Feb.) 13, Chicago, IL.: Mid America Institute.

    Google Scholar 

  • Smirlock, M. and Kaufold, H. 1985. Foreign Lending, Disclosure and the Mexican Debt Crisis. Proceedings: Conference on Bank Structure and Competition, Federal Reserve Bank of Chicago, 576–84.

    Google Scholar 

  • Stevenson, F.L. 1987. New Evidence on LIFO Adoptions: The Effects of More Precise Event Dates. Journal of Accounting Research, (Autumn) 306–16

    Google Scholar 

  • Sunder, S. 1975. Stock Price and Risk Related Accounting Changes in Inventory Valuation. Accounting Review, (Jan.) 31–47.

    Google Scholar 

  • White, L.J. 1988. Mark-to-Market Accounting is Vital to FSLIC and Valuable to Thrifts. Outlook of the Federal Home Loan Bank System, (Jan./Feb.) 20–4.

    Google Scholar 

Download references

Authors
  1. George J. Benston
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. Loyola University of Chicago, USA

    George G. Kaufman

Rights and permissions

Reprints and permissions

Copyright information

© 1990 Kluwer Academic Publishers

About this chapter

Cite this chapter

Benston, G.J. (1990). Market—Value Accounting by Banks: Benefits, Costs and Incentives . In: Kaufman, G.G. (eds) Restructuring the American Financial System. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-2197-9_4

Download citation

  • DOI: https://doi.org/10.1007/978-94-009-2197-9_4

  • Publisher Name: Springer, Dordrecht

  • Print ISBN: 978-94-010-7485-8

  • Online ISBN: 978-94-009-2197-9

  • eBook Packages: Springer Book Archive

Publish with us

Policies and ethics

Search

Navigation