RBC lifts CET1 ratio by 80bp with model parameter update

Reclassification of small business clients carves out C$26 billion of credit risk

Royal Bank of Canada (RBC) amped up its Common Equity Tier 1 (CET1) ratio by 80 basis points to 13.6% in the three months to the end of July, after a change in the way the bank treats small business clients drove a reduction in risk-weighted assets (RWAs). 

The bank carved out C$26 billion ($21 billion) from credit risk exposures with model parameter updates, which increased the threshold for determining which small business clients are subject to retail capital treatment. 

RBC’s total credit

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 copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net 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: