Dictionary of Banking Terms: mark to market
mark to market
daily adjustment of an account or investment to reflect actual market value, as opposed to historic accounting value or book value. Securities and futures are revalued on a daily basis, but bank loans and investment other than securities are evaluated and marked down only when there is a change in the credit relationship. The Financial Accounting Standards Board Statement 115 (FAS 115) requires banks and other financial institutions to report debt securities and equities eligible for sale at current market value. Only bonds to be held to maturity may be listed at their original purchase price.
