Accounting changes could force US banks to take thousands of billions of dollars back onto their balance sheets in the coming months in a move that is likely to curb further their lending and could push them into new capital-raisings, analysts have warned.
Analysts at Citigroup said a planned tightening of the rules regarding off-balance sheet vehicles would force banks to reconsider arrangements and could result in up to $5,000bn of assets coming back onto the books.
The off-balance sheet vehicles have been used by financial institutions to keep some assets off their balance sheets, thereby avoiding the need to hold regulatory capital against them.
Financial Times