Market shocks push IRC to records at EU banks
Component for default and migration risk hits new highs at several dealers
The incremental risk charge (IRC) is exerting growing pressure on European Union banks’ market risk capital requirements, reaching record levels at some firms in the first quarter, after dealers expanded their fixed-income trading portfolios during a tumultuous start of the year.
Aggregate IRC risk-weighted assets (RWAs) across 16 lenders tracked by Risk Quantum rose by €4.4 billion ($5.1 billion)
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