The global financial crisis highlighted the systemic risk posed by large, complex banks. Six years later, investors remain daunted in their attempts to fully comprehend and discern the range of risk exposures that these entities face. While banks periodically provide huge reams of annual and interim reports, they remain notoriously opaque: readers of financial statements have difficulty readily discerning and aggregating key risks.

This state of affairs constrains the investability of banks. Bank reports must shift to reflect economic realities and the full risk exposures of bank balance sheets.

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