Basel III risk-weight changes to tax European banks most

Large European banks will be hardest hit by Basel III reforms to the risk-weightings of exposures captured by their internal ratings-based (IRB) models.

The latest Basel III monitoring report shows that European banks designated as Group 1 – large, internationally active firms – would see the risk-weight of their IRB exposures rise by 80 basis points to 29.7% on average once the rules take effect, an increase of 2.8%.
 
On the flip side, banks from the Americas and the rest of the world would