European banks and international accounting standards adoption

International Relations

Euro Banks

This is a paper on Euro Banks adopting rules. There is one reference used for this paper.

There are a number of changes occurring in the international money markets today. It is important to look at an article concerning the reluctance of Euro banks to adopt rules and determine its pertinence to international business.

New Rules

There is pressure for European banks to adopt "new global bookkeeping rules by 2005-the target date for European Union (EU) adoption (http://money.cnn.com/2004/04/05/news/international/eurobank.reut/index.htm)." Those in favor of the rules point out this will be good for international trade, as these rules are like those used by the United States. While some say they will adopt the measures, they stress they are doing so only due to pressure, not because they feel the rules are good. The French are strongly opposed because the "new international rules could be out of line with their national accounting regime, as well as threaten Europe's financial system (http://money.cnn.com/2004/04/05/news/international/eurobank.reut/index.htm)." While it may not be known until September 2004 whether the commission will to adopt all of the rules, many banks know they will have to decide sooner in order to complete internal accounting changes.

Conclusion

There is a push in Europe to adopt new accounting rules by the year 2005. While some banks are concerned about the financial system now in place, they have stated they will reluctantly agree to the changes which are similar to those currently used by the United States.