Capital One’s credit exposure riskiness set to rise post-merger

Discover acquisition would push share of assets with 100% risk-weight to six-year high, pro forma analysis shows

Capital One’s average credit risk-weighting of its exposures is poised to increase almost three percentage points to 77% following its purchase of Discover Financial, Risk Quantum analysis shows.

Based on the latest available data on the two banks’ credit exposures as of December 2023, the combined company would be saddled with $440.9 billion of assets carrying full risk-weight, 42.1% higher that Capital One’s current holdings of $310.4 billion. As a result, the share of exposures weighted at

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