StanChart culls debt, switches model, and market RWAs drop
Structured product RWAs now calculated using internal model, saving $1.1 billion
Standard Chartered sheared $2.4 billion from its market risk-weighted assets (RWAs) – an 11% drop – over the first half of 2018, thanks to reductions in debt held for trading, as well as the bank’s use of its internal model to assess certain structured products.
Market RWAs fell to $20.6 billion at the end of June from $23 billion on January 1. The bank started fully calculating RWAs for foreign exchange and interest rate structured products under its internal model from March 2018. Previously
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