Credit Suisse may slip leverage capital bind

A build up of risky assets at Credit Suisse may soon cause its leverage-based capital requirement to lose its status as the bank’s binding constraint.

Risk density – calculated as risk-weighted assets (RWAs) divided by total leverage exposure – is on track to hit 33% at the bank by the end of Q1, up from 32% as of end-2019 and 28% in 2016.

The Swiss too-big-to-fail regime (TBTF 2), which came into full effect at end-2019, compels banks to maintain a ratio of Common Equity Tier 1 (CET1) capital

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 or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

If you already have an account, please sign in here.

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here