Reining in Risk: Improve the Transparency of Banking Financial Reports

Vincent Papa, PhD, CFA, director of financial reporting policy at CFA Institute, recently moderated a panel discussion at the Paris EUROPLACE International Financial Forum on the transparency of banking financial reports. CFA Institute sponsored the panel discussion, which reviewed the current state of play of reporting across European banks and highlighted key risk disclosure and standard-setting initiatives underway to improve the transparency of banks. They include the financial instrument accounting standards update by the International Accounting Standards Board as well as the enhanced disclosure task force formed by the Financial Stability Board. 

In this interview that followed the discussion, Papa examines the link between sovereign debt and bank risk; capital requirements for the banking industry; the need to improve transparency for derivatives; and other systemic risk issues relating to banks.