EU banks face €500bn RWAs surge from full output floor
Risk charges to rise 8% on average under fully phased-in rules by 2033
European Union banks would see their risk-weighted assets (RWAs) rise by €500.2 billion ($577.3 billion) if the Basel III output floor were in effect as of March 31, Risk Quantum analysis shows.
The floor – set to be fully implemented in the EU by January 1, 2033 – establishes a minimum RWA level equal to 72.5% of the figure calculated under the standardised approach.
Among the 23 banks analysed
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