Dec 11 - Standard & Poor's Ratings Services believes that investors in financial
institutions are best served when they can base their decisions on an analysis of data that are
consistently and transparently presented and have uniform definitions of critical financial
measures. We find that current U.S. bank disclosures lack completeness, transparency, and
consistency, which impedes financial analysis and hinders greater confidence and stability in
In the article, titled "A Case For Greater Disclosure, Transparency, And Uniformity In U.S.
Banks' Financial Reporting," we take a look at a few of the areas where we believe U.S.
financial institutions can enhance their public disclosures almost immediately.
"Given that banking is essential to an interconnected global economy, more transparent and
detailed disclosures are necessary, in our view," said Standard & Poor's credit analyst Stuart
Some key areas where we believe U.S. publicly available financial disclosures may be
improved include loan loss reserves by category, assumptions behind loan reserve calculations
and loss estimation, loan-to-value ratios for real estate portfolios, refreshed data on troubled
debt restructurings, consistent value at risk disclosure, and investment portfolio details.