Strategic Balance Sheet Restructuring
Strategic Balance Sheet management has never been so important for financial institutions.
To understand the scope of Balance Sheet Restructurings, one has to accept that there are two fundamental accounting methods:
1. mark to market accounting, where all the assets are priced at the best obtainable market values
2. accrual accounting, where assets are booked as "held to maturity" with potential reserves should there be a reason why they might not be repaid.
Recently selective Investment Banks have been offering the services of assisting Clients in rebalancing their assets, in such way that they are neater and friendlier to interpret. This can be applied via simple repackaging of the single assets, or by selling the entire portfolios to the Special Purpose Vehicles. As the money needed for the purchase is usually that of the Clients (via the loan), Vision Finance is capable of guiding clients on the right company formation and interpretation of the regulatory and accounting standards.
Vision Finance, like all other investment banks, does not however provide advice on legal, accounting, tax or regulatory treatment of the proposed changes, and the Clients are themselves responsible to investigate these issues in accordance with their legislative supervisors, and if needed seek the necessary approvals. Vision Finance will assist the client with gathering and presenting of the information.
Vision Finance, being a relatively small entity is able to risk manage the issues of transaction confidentiality.