These events have again provoked debates regarding the pros and cons of financial globalization, the impact of which is incrementally visible, resulting in : (i) slowdown of world economy and consequently in trade in selected products and markets, (ii) volatility in equity markets which in some cases generated losses, and (iii) easing of liquidity in a number of ways by the affected central banks, which is now compounding inflationary pressures otherwise building up because of the international rise in food and oil prices.
The reported values are measured according to the applicable accounting framework, which is IFRS for most banks in the EU, as said before. Furthermore, consistency of data reported in the annual accounts and regulatory reports has to be ensured. All these aspects show that banking supervisors have convincing reasons to call for the application of high-quality accounting frameworks.