RWA probe could cut modelling flexibility, says new Basel chief

Wayne Byres of the Basel Committee on Banking Supervision

Banks are likely to have less freedom to calculate their own regulatory capital requirements after the Basel Committee on Banking Supervision completes its probe of modelling choices at different institutions, according to Wayne Byres, the committee's new secretary-general.

"I do think it is highly likely we will find areas where we want to reduce the range of options open to banks when they calculate their regulatory capital level," he told Risk in an interview.

US banks and regulators complain

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