Accounting approach that makes the valuation of risk positions at a bank dependent on whether the corresponding items are funded in the short term, medium term or long term. Regardless of how long an institution wishes to hold a risk position on its books, under this proposal the risk position would always be valued at market price if it was refinanced in the short term. If, however, a risk position is refinanced on a long-term basis – for example, by issuing a long-term bond – then it could be placed on the balance sheet at a value that takes into account the expected future cash flows of the position. In this case, the valuation would be independent of temporary price fluctuations on the financial market. – In the course of the financial crisis that followed the subprime crisis, this so-called Geneva model (the proposals originate mainly from the International Centre for Monetary and Banking Studies in Geneva) was widely discussed. – See mark-to-market approach, procyclicality.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/
Passende Formel
Gesamtkapitalrentabilität (ROA)
Die operative Verzinsung des gesamten eingesetzten Kapitals messen.
Variablen: EBIT Ergebnis vor Zinsen und Steuern; Gesamtkapital durchschnittlicher Bestand.
Anwendung: Für betriebs- und finanzierungsunabhängige Rentabilitätsvergleiche.