Basel III overhaul triggers credit RWA reshuffle at EU banks
A-IRB down by a third, F-IRB more than doubles and standardised approach up by a quarter
The implementation of Basel III reforms for credit risk in the first quarter of 2025 prompted a major recalibration in how European Union banks calculate risk-weighted assets (RWAs). Across 16 institutions analysed by Risk Quantum, RWAs under the advanced internal ratings-based (A-IRB) approach fell by 32.6%.
Aggregate RWAs calculated under A-IRB dropped from €2.03 trillion ($2.39 trillion) at the
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