ING’s market RWAs jump 30% as FX positions breach waiver limit

Increase arose from stricter EU rules under which FX exposures qualify as structural hedges

ING Bank’s standardised market risk-weighted assets (RWAs) increased sharply from virtually nil to €5.5 billion ($5.5 billion) in the second quarter, after its foreign exchange positions became too large to be exempted from capitalisation.

European Union rules exempt net FX exposures from RWA-based capital charges if they total less than 2% of a bank’s own funds – putting the threshold at €1.3 billion for ING Bank.

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The bank breached the 2% limit during the second quarter, instantly

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