Regulation triple-whammy lops 63bp off StanChart’s CET1
January 1 saw the introduction of SA-CCR, curbs on IRB modelling and the reversal of software capitalisation benefits
Standard Chartered’s risk-weighted assets (RWAs) jumped by $6.3 billion at the stroke of midnight on January 1, as the bank implemented the revised standardised approach to counterparty credit risk (SA-CCR) and regulator-mandated fixes to its internal credit risk models.
The tweaks inflated credit and counterparty credit RWAs by 3% compared with December 31, to $226 billion, and shaved 31 basis points off the bank’s Common Equity Tier 1 (CET1) ratio.
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In line with the internationally
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