Following is the text of a speech to be delivered today by Bank of Canada Governor Mark Carney. The text was released in Ottawa. The footnotes and charts in the original version have been removed from this text.
A dispute between U.S. and international accounting groups about how to value financial instruments is threatening to derail efforts to converge global standards, affecting how trillions of dollars of assets are marked on bank balance sheets.
My column today chronicles how Spanish banks for years violated accounting rules by using a technique called dynamic provisioning, with the European Union's full encouragement. The piece quotes extensively from the transcript of an April 2009 meeting of the monitoring board that oversees the trustees for the London-based International Accounting Standards Board.