SME loans more capital intensive for big eurozone banks
Corporate loans to smaller enterprises attract high risk weightings
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
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 info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Risk Quantum
China leads global banks’ LCR retreat in 2025
Twenty-one of 29 G-Sibs reported lower liquidity ratios than the previous year
Private credit disclosures leave more questions than answers
Muddled metrics and scattergun reporting hinder comparison of US lenders
Top US banks’ AFS markdowns reverse sharply in Q1
Aggregate unrealised losses jump 130% after five-quarter recovery
AmEx posts highest LCR among US banks on return to disclosure
Retail and contractual flows dominate 30-day stress scenario
UBS set for highest G-Sib CET1 minimum under Swiss proposal
Effective CET1 minimum would clear 13% on foreign-participant deduction
Euro area NBFI derivatives spike as ECB flags systemic risks
Cross-border claims surge 32% in Q4, with ECB report suggesting activity concentrated among few G-Sibs
Cross-border bank credit growth hits 17-year high
Euro credit to emerging markets grows 12%, outpacing dollar
Wall Street giants rack up VAR breaches
Goldman hit hardest as JP Morgan, BofA and Morgan Stanley also exceed model forecasts in Q1
