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Many banks have adopted inconsistent accounting policies and reporting practices which make the assessment and comparison of their performances very difficult.  Some banks have allegedly overstated reported profits, while some banks continue to accrue interest on non-performing credits, declare unearned profit and thereafter appropriate such profits as provisions for bad and doubtful debts.

It is the belief of the monetary authorities that there is need to sustain public confidence in the financial statement of banks.  The new uniform accounting standards therefore seek to provide a guide for accounting policies and accounting methods that should be followed by banks in the preparation of their financial statements.