French banks are pleased that, during the recent Toronto summit, the G20 confirmed its objective of a "more resilient financial system (...) which is able to support solid and stable economic growth".
The FBF has noted the lack of progress in the global reform of accounting standards requested by the G20. The proposals made in recent weeks by the US and international standards boards fail to meet the objectives of financial stability and convergence set forth by the heads of State and government.
FBE press releaseEuropean Banks Request Progress on IAS 39 Before Endorsement In a letter sent today to Commissioner Bolkestein, as well as to the heads of the International Accounting Standards Board (IASB), the Basel Committee, the Committee for European Securities Regulators (CESR) and the European Central Bank, the European Banking Federation (FBE) requests further progress be made on IAS 39 before the EU takes a decision on its endorsement.
From: EBF-FBEAs expected, the International Accounting Standards Board (IASB) has published its Amendment to IAS 39 aiming at introducing Fair Value Hedge Accounting for a Portfolio Hedge of Interest Rate Risk on the basis of the IASB's own preferred approach. This alleviates some of the difficulties caused by the IAS 39 hedging rules, but leaves unresolved the core deposit issue and the false volatility in equity caused by cash-flow hedging.