BNY Mellon, Goldman join Citi in escaping Collins floor
Outpaced drop in standardised RWAs pushes banks above threshold – but custodian only bank to reap benefits
BNY Mellon and Goldman Sachs escaped the so-called Collins floor in the fourth quarter of 2022, as their internally modelled risk-weighted assets (RWAs) ended up above those calculated using the regulator-set standardised approach.
At Goldman, a steep retreat in standardised RWAs opened a $30 billion gap with the modelled figure, which was previously $13.5 billion lower. The bank reported $649 billion using the standardised approach and $679 billion under its own models.
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