Model woes swell ABN Amro RWAs
Trim and model reviews add €5 billion in risk-weighted assets
A turgid quarter for ABN Amro was capped by a €400 million ($451 million) capital charge to fix shortcomings with its internal models.
At the end of last year, the Dutch bank’s supervisor passed judgement on its risk-weighted asset calculations as part of the Europe-wide targeted review of internal models (Trim). The assessment and resulting model reviews increased RWAs by €5 billion. The associated capital charge is 8% of this figure: €400 million.
ABN Amro partly offset the add-on by
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