Tools to blunt credit risk popular at EU banks. But why?

European banks are enthusiastic users of credit-risk mitigation tools, even though they seem to have no more than glancing effects on risk-weighted assets (RWAs), a European Banking Authority (EBA) survey shows.

Forty-nine firms out of a sample of 94 said they use CRM tools, such as credit guarantees and derivatives, for corporate exposures measured using their advanced internal ratings-based (A-IRB) models. Twenty-nine incorporate them for corporate exposures captured using their foundation

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a 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 individual account here: