Risk-Weighted Assets

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Risk-Weighted Assets

The reserve requirements for a bank, weighted according to risk. Risk-weighted assets are the capital a bank must keep to cover its liabilities. They are calculated as follows: Government bonds have a risk weight of 0% while all other assets have a risk weight of 100%. One calculates the units of each type of asset a bank carries to find how risky its assets are.
References in periodicals archive ?
The current estimate is that the transaction will result in a 30 September 2015 pro forma decrease in risk weighted assets of approximately 0.
With regard to Capital Adequacy, CBE revealed that Capital Base to Risk weighted assets remained unchanged in June from March at 13.
1 per cent positive impact on its common equity tier 1 capital resulting from a reduction of its risk weighted assets.
Nykredit plans on holding equity capital of at least DKK63bn by 2019, which translates to 15 percent of its risk weighted assets.
The calculation of tier capital, the allocation of deductions, and the optimisation of risk weighted assets can no longer be performed in isolation.
76 per cent of the total credit risk weighted assets.
Value Partners, a leading management consultancy firm in the Middle East, said it has identified strategies for banks in the Gulf region to help them reduce the risk weighted assets (RWA) and optimise capital.
04 trillion) of risk weighted assets that are linked to sovereign bonds -- rather than the zero amount that regulators are counting on.
Risk weighted assets connected with the disposal are not material, the company said.
A study by Bain & Co has revealed that Nordic banks' average return on risk weighted assets just about covers cost-of-capital.
Basel II allows banks to calculate its risk weighted assets either using the standardised approach or based on the bank's internal ratings based (IRB) approach.
Danish lender, Danske bank (CPH: DANSKE), has been asked to shore up its risk weighted assets by USD18bn 'over time' by the financial Supervisory Authority.