Risk density and capital requirements inversely related

- By Joshua Walker
- 24 Jul 2026

Jurisdictions with high risk density in the calculation of risk-weighted assets tend to have lower nominal capital requirements, according to a report by the Bank for International Settlements’ Financial Stability Institute (FSI).

The study examined 29 global systemically important banks (G-Sibs) across seven jurisdictions and found that risk density – measured as risk-weighted assets divided by

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