FVA: How six smaller banks do it
Big dealers do not have a monopoly on funding valuation adjustment (FVA) – regional banks are now pricing, and in some cases accounting for it
Danske Bank, ING and an unnamed North American regional bank – the first prices funding valuation adjustment (FVA) into its trades and is considering an accounting charge; the second prices it but has ruled out recognising it in accounts; the third took a multi-million dollar loss last year to switch to the new valuations.
Each of these three banks has its own view on whether and how FVA should
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