Morgan Stanley curbs SA-CCR impact on core ratio

Impact of early implementation far below original estimates thanks to mitigatory action

The early switch to the standardised approach to counterparty credit risk (SA-CCR) yielded Morgan Stanley a lower impact on its capital adequacy than it originally estimated.

The firm, which opted to implement SA-CCR on December 1, a month before the US-wide deadline, expected the switch to lop as much as 120 basis points off its standardised Common Equity Tier 1 (CET1) ratio without remedial actions. Instead, the adoption cost the bank 82bp in the fourth quarter of last year. 

  !function(e,i

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 info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net 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 Risk.net? View our subscription options

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