FVA: How six smaller banks do it

From ING to Danske Bank, regional players are taking part in the FVA debate, but practices are mixed

blueprint
FVA: basic blueprint is the same, but details vary

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 be applied, is moving at its own pace, and has its own challenges to confront.

In the case of Danske

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