Switch to internal model helps HSBC cut counterparty risk by 18%

HSBC cut counterparty credit risk-weighted assets (RWAs) by $10.4 billion – almost a fifth of its total – in the second quarter, driven largely by a switch to using its internal model to calculate its exposures.

The bank reported it was now using its own model to size risk-based capital requirements for Asian and US portfolios, which reduced the counterparty credit RWAs for these exposures by $4.3 billion and $2.4 billion, respectively.

The remainder of the quarter-to-quarter decrease was

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: