Banks to Report Risks More Broadly in Global Accounting Proposal

Proposed changes to global accounting standards published Wednesday would fundamentally change banks’ financial risk reporting, with a new method mirroring how the industry and its regulators approach risk management.

Banks would report on risks across their portfolios, rather than on a deal-by-deal basis, under the draft proposal from the International Accounting Standards Board.

This method would bring financial accounting in line with banks’ own risk management, and the figures checked by banking regulators. It would also give investors a better overview of the risks banks face, according to the board.

The standard-setter’s proposal marks the latest, and final, round of ...