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Canada may embrace mark-to-market accounting under new accounting rules being considered by the Canadian Accounting Standards Board aimed at improving how financial instruments are reported in financial statements. The Canadian accounting standards-setter is likely to move towards mark-to-market, or fair value, rules for derivatives contracts held by Canadian companies. The new

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The wild world of credit models

The Covid-19 pandemic has induced a kind of schizophrenia in loan-loss models. When the pandemic hit, banks overprovisioned for credit losses on the assumption that the economy would head south. But when government stimulus packages put wads of cash in…

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