Third, weaknesses in the application of accounting standards and the shortcomings associated with the valuation and financial reporting of structured products played a significant role in the current turbulence through pro-cyclical valuations and lack of full disclosure of banks’ true risk profile through the cycle.
BIS Review 87/2008  3  Fourth, the crisis revealed the need to adapt some of the tools and practices of central banks to manage system liquidity in the light of banks’ cross-border operations.