Banking Profits/Losses on Loans

Jordan Hayes jmhayes at
Sun Mar 21 14:37:25 PST 1999

From JayHecht at Sun Mar 21 14:34:54 1999

When a bank's loan portfolio appreciates/depreciates with

interest fluctuations, how are the gains/losses "booked?"

You mean for earnings? For taxes? For loan-loss-reserve calculations?

I would presume just like any other business 'books' any other asset.

For earnings and taxes, they don't get 'booked' until they are realized; everything else is just a question of marking to market.


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