UNDERSTANDING THE CREATIVE ACCOUNTING PRACTICES IN THE BANKING SECTOR
UNDERSTANDING THE CREATIVE ACCOUNTING PRACTICES IN THE BANKING SECTOR

Author(s): EUGENIA BOGOS (CALANCEA)
Subject(s): Business Economy / Management, Accounting - Business Administration
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: accounting; banking industry; financial statements; creative accounting;
Summary/Abstract: This article aims to present the world of creative accounting within the banking sector, with the scope to shed light on the deceptive financial practices employed by banks. Through an extensive literature review and analysis of real-world cases, this study examines the motives, methods, and consequences of creative accounting in banking. By exploring the intricate techniques used to manipulate financial statements, the article aims to enhance the understanding of the potential risks and implications associated with such practices. Moreover, it highlights the regulatory challenges faced by authorities in detecting and preventing these manipulative behaviors. This emphasizes the difficulties which regulatory authorities may encounter when it comes to identifying and stopping creative accounting practices in the banking sector. Creative accounting techniques are often designed to obscure the true financial position of banks, making them elusive and challenging to detect through conventional regulatory mechanisms.

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