Matías Vieyra is a Senior Economist in the Financial Stability Department at the Bank of Canada. His research interests are macroeconomics, monetary economics, and heterogeneous-agent models. He received his Ph.D. in Economics from University of California, Los Angeles.
Using stock market data on banks, we show that the book value of loans recognizes losses with a delay. This delayed accounting is important for regulation because the requirements regulators impose are based on book values.
