Proceedings of Annual Paris Economics, Finance and Business Conference 7 - 8 April 2016, Espace Vocation Haussmann, Paris, France ISBN: 978-1-925488-04-3 Banks Valuation Techniques in the New Regulatory Environment: A Game Theory Perspective Amira Annabi1 and Alicja Reuben2 In the aftermath of the global financial crisis, US regulators have required banks to disclose more details regarding the valuation techniques of their assets and liabilities. Using 2013 and 201410K reports for 14 US primary dealers, we examine the determinants of the choice of the valuation techniques in a game theory set-up. Consistent with their publicly disclosed shareholder policy, we assume that the banks’ objective is to maximize theirreturn on equity (ROE). Our key findings are threefold. First, we show that the optimal strategy for the Global Systemically Important Banks (G-SIBs) is to select the valuation techniques associated with a lower level of risk.Conversely, the optimal strategy for the non-G-SIBsis to select the valuation techniques associated with a higher level of risk. Finally, we demonstrate that the above optimal strategies are consistent over time. These findings are in line with the regulators' mindset to reduce the balance sheet riskiness of globally systemically important banks. JEL Codes: G11, G23, G26, G28 1 Dr. Amira Annabi, Department of Economics and Finance, Manhattan College, USA. Email: amira.annabi@manhattan.edu 2 Dr. Alicja Reuben, Department of Management and Marketing, Manhattan College, USA. Email: alicja.reuben@manhattan.edu