Risk density of US systemic banks trumps that of EU peers

Ratio of RWAs to leverage exposures averages 44.7% at US G-Sibs

Systemic US banks hold a far higher concentration of risky assets than their UK and eurozone peers, Risk Quantum analysis shows.

Risk-weighted asset density – calculated as RWAs divided by leverage exposure –  averaged 44.7% at the eight US global systemically important banks (G-Sibs) in Q2. This compares to 30.3% at the three UK G-Sibs and 32.1% at the eight eurozone G-Sibs.

The higher the RWA density, the more risky assets a bank has as a proportion of its total on- and off-balance sheet

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