Risk-weighted assets (RWAs)
Though Covid crisis rages, US banks’ op RWAs fall
Wells Fargo sees op RWAs fall $2.9 billion
Credit models at odds with standardised approach on Covid
Increase to advanced approaches RWAs far outpaces growth to standardised
UK banks eye Pillar 2 savings after PRA intervention
Top lenders could free £4.4 billion of capital
BBVA trims capital target following ECB relief measures
Spanish lender targets 225-275bp CET1 management buffer
CVA, market RWAs more than double at UBS in Q1
Overall risk-weighted assets increased 10% on end-2019
European banks seek capital relief for CVA hedges
Volatile trading in March caused CVA hedges to dominate market risk RWAs at some smaller dealers
Output floor cliff edge effects threaten EU banks
Capital measure to have uneven impact across five-year phase-in
Eurozone banks fear market risk capital hike due to Covid-19
Hopes that ECB will fix double-counting as VAR breaches rise on market volatility
ECB data spotlights credit risk-weight disparities
Weightings applied to standardised approach exposures far exceed those for IRB equivalents
UK banks’ RWAs plummeted in Q4 2019
Risk drop-off helped raise aggregate CET1 ratio
ECB cuts top banks’ required capital by over €350bn
Capital conservation requirement and Pillar 2 guidance amounts relaxed, countercyclical capital buffers encouraged to fall
The open data revolution in banking falls short
Lax Pillar 3 rules are leading to inconsistent data being collected
Citi shed over $32bn of counterparty exposures in Q4
Risk-weighted assets for CCR exposures dropped -12%
Low risk assets pile up at systemic US banks
Sub-100% risk-weighted assets increased by $157.9 billion
Goldman hits the Collins floor
Changes to loss-given-default models caused advanced approaches credit RWAs to plummet
De-risking efforts yet to boost profits at Lloyds
Commercial banking entity saw RWAs fall -11% in 2019
Crédit Agricole leads French banks on return on RWAs
BNP Paribas only bank to improve RoRWA year-on-year
HSBC to reallocate $100bn of RWAs in shake-up
Global banking and markets division to take brunt of cuts
EU banks rue SA-CCR mismatch with US
European clearers are stuck with CEM until 2021, but some US banks are reluctant to switch early
Tax windfall at Crédit Agricole to fund capital shake-up
Relief for Emporiki sale bolstered CET1 capital ratio +40bp
RBS takes axe to NatWest Markets
Bank plans to slim trading operation to 10% of total RWAs
Op RWAs tumble €3bn at Commerzbank in Q4
Op risk capital requirement the lowest for at least nine years
Credit Suisse may slip leverage capital bind
Swiss bank has risk density of 32%
Barclays to shrink capital buffer
Bank targets excess capital over regulatory minimum of 100 basis points by year-end