

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 [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact [email protected] to find out more.
You are currently unable to copy this content. Please contact [email protected] to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
More on Risk Quantum
Regulation
What lies beneath: Nomura’s iceberg balance sheet
Collateral received by the Japanese bank exceeds its total on-balance-sheet assets – does it matter?
Receive this by email