OSLO, Jan 9 (Reuters) - DNB, Norway’s biggest bank, will book a 235 million crown ($41.90 million) accounting gain on the mark-to-market adjustment of its basis swaps, it said on Wednesday.
For the full year, however, the accounting adjustment for its swaps will result in a 1.69 billion crown loss, it said in a statement.
Basis swaps are derivative contracts entered into in connection with long-term funding in international capital markets where the funding currency is converted to crowns.
However, over the lifetime of the product, the mark-to-market adjustments will have zero effect, it added.
$1 = 5.6084 Norwegian krones Reporting by Balazs Koranyi