The Australian Prudential Regulation Authority is prodding financial institutions to review, and disclose, valuations on assets whose carrying value may well be lower due to turbulent capital markets and reduced outlook for economic growth in some economies.
The Australian reported on APRA chair John Laker's evidence to a Senate estimates committee hearing yesterday evening.
"In this uncertain world there is little margin for error," he told the committee. He said APRA wrote to financial institutions to make sure their valuations were "realistic".
There remains doubt that their "losses offshore have been fully identified and made transparent to investors" the newspaper reported.