The role of valuation and leverage in procyclicality
Market practices related to market-sensitive valuation techniques appear to have contributed to an increase in the procyclicality of leverage in the financial system. This reports sets out a menu of policy options that could be considered to mitigate these procyclical mechanisms. These include quantitative limits on leverage, steps to support better measurement and pricing of risk through the cycle (in particular funding liquidity risk), and measures to mitigate procyclical effects that mark-to-market valuation may have on incentives and decision-making.
|This book is provided by Bank for International Settlements in its series CGFS Papers with number 34 and published in 2009.|
|Contact details of provider:|| Postal: |
Phone: (41) 61 - 280 80 80
Fax: (41) 61 - 280 91 00
Web page: http://www.bis.org/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:bis:biscgf:34. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christian Beslmeisl)
If references are entirely missing, you can add them using this form.