Cash Flow Accounting in Banks : A study of practice

Financial communication collapsed during the autumn 2008 and apparently no common language for finance existed - and the world economy almost froze.


Since then many banks have filed for bankruptcy and others been taken over by competitors, creditors, or the governmental authorities. Central banks have provided hundreds of billion dollars for toxic asset repurchasing from the financial sector. Central banks have also intervened in financial markets by providing thousand billion euros in financing for banks to facilitate liquidity. I is still difficult fto evaluate the quality of banks\\\' balance sheets, and better measures of liquidity are needed.


Understanding how cash flows in banks is an important part om improving the accounting communication and to build accounting regime that increases the resilience of financial system.