Wells Fargo’s standardised and modelled RWAs drift apart
Standardised RWAs have increased for three consecutive quarters, putting pressure on the bank’s CET1 capital ratio
Estimates of Wells Fargo’s riskiness as gauged using the regulator-set approach and the bank’s own models moved in opposite directions in the last quarter of 2021.
Total risk-weighted assets (RWAs) assessed under the standardised approach rose $19 billion quarter on quarter to $1.24 trillion, but fell almost $22 billion under the advanced approach to $1.12 trillion.
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At end-2021, the gap between Wells Fargo’s RWAs under the two approaches was $121 billion, the widest measure since at
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