A more ambitious alternative would be to seek a more systemic and standardised valuation methodology in the first place, against which different approaches can be cross-checked. The key here would be to establish an objective measure of expected loss, less susceptible to the excess volatility of market prices but adept at picking up its timely signals. In the language of George Shackle, stricter valuation standards would help place some bounds on the expectations and imaginations of bankers. This is a role which neither accountants nor regulators are best placed to carry out. It would require a body with both expertise in valuation and objectivity. It would seek consistency and, as far as possible, accuracy in valuations across asset classes, institutions and countries. An International Valuation Standards Board already exists. But it standards have only been adopted in around half a dozen countries. Accounting and regulation already have fora to support consistency of standards. During this crisis, valuation practices have been every bit as important. Perhaps they too need international recognition.   Business models matter, especially for banks  Accounting standards already reflect characteristics on the assets side of banks’ balance sheet. For example, IASB standards require consideration of the cashflow characteristics of assets (for example, specified cashflows of interest and principal) and the intentions of the holder (for example, to collect the contractual cashflows). But for banks the characteristics of their liabilities may be every bit as important as their assets. Indeed, at times of stress in funding markets, liability characteristics may be more important.

With the depth and diversity of experience represented on both the Board and staff of Financial Mediation Bureau, I am confident that the new Bureau will be well placed to discharge its responsibility in ensuring a fair and equitable resolution process for consumers. The creation of this Bureau represents an important milestone in the enhancement of the consumer protection infrastructure. Consumers are encouraged to make full use of the avenue available to seek resolution of the issues faced by them. Ladies and gentlemen, I would like to take this opportunity to express our appreciation to the previous Board of Directors of the Banking Mediation Bureau and Insurance Mediation Bureau for their contributions and dedication in giving selflessly of their time and experience in the operation of the bureaus. I would also like to acknowledge the contributions and support by the Association of Banks in Malaysia, Association of Finance Companies in Malaysia, Association of Merchant Banks in Malaysia, Life Insurance Association of Malaysia, Persatuan Insurans Am Malaysia, Association of Islamic Banking Institutions Malaysia, Malaysian Takaful Association, Association of Development Finance institutions of Malaysia, MBF Card Services (M) Sdn. Bhd., American Express and Diners Club (M) Sdn. Bhd. in making this bureau a reality. They have agreed to fund the operational costs of this bureau through levies on individual member companies in order that the services of the bureau can be provided free of charge to members of the public.