Wells Fargo eyes escape from Collins floor
Advanced and standardised RWAs are just 1% apart
Wells Fargo anticipates its binding risk-based solvency ratio will be set using internally-modelled risk-weighted assets (RWAs) in the near future, which it says will lower its overall regulatory capital burden.
Under US rules, top banks calculate their RWAs using both the regulator-set standardised approach (SA) and advanced approaches (AA), which allow the use of firms’ own models. Whichever method produces the largest amount of RWAs is used to set that bank’s binding requirement.
At end
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