EU banks’ incremental risk charges up 20% in H1 2025
Heightened trading flows and worsening credit outlooks leave dealers with more risk-heavy books
European Union banks’ capital requirements for the incremental risk charge (IRC) – a measure of default and downgrade risk for traded bonds – climbed by 19.3% in the first half of 2025, as volatility in fixed-income markets ratcheted up in response to the White House’s trade policies.
Aggregate IRC risk-weighted assets (RWAs) across 17 lenders tracked by Risk Quantum rose to €32.3 billion ($37.7
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