Basel III prompts Scandi banks to redraw credit risk
Danske, Handelsbanken and Nykredit scale back A-IRB under new rules
Three major Scandinavian banks reclassified their credit risk-weighted assets (RWAs) in the first quarter, following Basel III revisions that took effect on January 1 and curtailed use of the advanced internal ratings-based approach (A-IRB).
Danske Bank’s A-IRB credit RWAs fell 25.1% to Dkr340.6 billion ($50.8 billion), while foundation IRB (F-IRB) RWAs surged almost sevenfold to Dkr177.5 billion
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