The fair value accounting that is used to value a bank's assets for purposes of meeting capital requirements requires a bank to periodically "mark its assets to market."

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Fair value accounting, often referred to as "mark-to-market" accounting, requires a bank to value its assets at current market prices. This approach is used for determining the value of a bank's assets for various purposes, including meeting capital requirements.

The Fair Value Accounting That Is Used to Value a Bank's