SME loans more capital intensive for big eurozone banks

Loans to small and medium-sized enterprises held by systemic eurozone banks consume proportionally more risk-weighted assets than non-SME exposures, Risk Quantum analysis shows.

Risk densities – RWAs divided by exposures-at-default (EAD) – were higher for corporate loans to SMEs assessed under the internal ratings-based (IRB) approaches than for loans to larger companies across a sample of six global systemically important banks. Retail loans secured by property owned by SMEs also attracted

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