13 Bankers

Just finished this amazing book called 13 Bankers. It discusses finance in a political setting. Essentially the struggle between pure laissez-faire economic system versus a tightly regulated banking system. It also discusses the regulation of banks from a historical perspective, and how the US achieved the lowest bank default rate post depression all the way till 1980s early.

It reminds me of my Accounting Theory course, where accounting standards setting is shown to be a political process. For instance, who gets the benefit of accounting for booking profit early say for a construction project? and can the people who benefits influence accounting standards?

Looking at Singapore's Accounting Standards Council board, it seems to me like a pretty balanced representation of different sectors in Singapore, but is everyone there as qualified as others to make accounting recommendations or does any member has great influence over others?

Also, a standard that is perhaps good for the stability of Singapore, for instance super conservative loan loss provision and prohibition of complex levered derivatives products, could mean that Singapore banks may not be able to compete effectively on an international arena. Furthermore, conservative accounting would usually lead to a lower earnings figure (relative to capital) compared to competitors, will this then lead to higher cost of capital which have a real economic impact on the competitiveness of our banks?

13 Bankers is an amazing book that strikes a balanced path in providing an end-of-book suggestion to such issues.

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读了以下论语篇章，觉得太有趣了。孔子不讲一些深不可知的道理，多讲立身处事的原则。但要每时每刻做到，也太难了。

子张学干禄。子曰：“多闻阙疑，慎言其余，则寡尤。多见阙殆，慎行其余，则寡悔。言寡尤，行寡悔，禄在其中矣。

意思大略是说一个人需要博学但同时要保存怀疑的的能力，不能变书呆子。说话要恰到好处，不可多说，多则容易失信。 即时见识广了，如有不安于心之事，依然不做。要做的事，须中道而行，无过无不及。如此则少后悔。这升官的方法就在其中。

Starting work in a month's time. It will be great to apply these principles daily, and not read and chuck it aside.

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