Exposure to the Russian market is to be reduced, with a
risk-weighted asset (RWA) reduction of approximately 20 per cent planned by end-2017 (RWA as at 31.
The Banker database was helpful as a means to obtain the year-end 2013
risk-weighted asset levels for the top fifty banks most likely to be prime prospects for cocos.
The group has appointed a team to engage in a "comprehensive
risk-weighted asset mitigation and capital-enhancing actions across all geographical areas", Sarris added.
The equity that MIGA s guarantee frees up will allow Societe Generale s Serbian subsidiary to grow its business and increase its lending activities in Serbia through creating headroom in the
risk-weighted asset ceiling for the Societe Generale Banking Group s Serbian business.
The rule permits sponsoring banks, bank holding companies, and thrift institutions (banking organizations) to continue to exclude from their
risk-weighted asset base, for purposes of calculating the risk-based capital ratios asset-backed commercial paper (ABCP) program, assets that are consolidated onto sponsoring banking organizations' balance sheets as a result of Financial Accounting Standards Board Interpretation No.
Cumming expects more corporate lending to move toward structured rated lending: "With the Basle changes being anticipated, you now have a 20%
risk-weighted asset as opposed to a 150%
risk-weighted asset when a company is not rated.
Question marks remain about the reliability and comparability of
risk-weighted asset calculations and, until these are resolved, confidence in capital ratios cannot be fully restored.
Tier 1 Capital to
Risk-Weighted Assets increased to 11.
The devaluation of the Ukrainian hryvnia affected net trading income and the appreciation of rouble, US dollar, and Swiss franc led to an increase in
risk-weighted assets, the bank said.
Risk-weighted assets are constructed by assigning different weights to assets with different levels of risk and summing the totals.
Deutsche Bank has substantial exposure to market risk where assets with market risk exposure accounted for 58 per cent of its total
risk-weighted assets as at end-June 2013.
5 per cent of credit
risk-weighted assets by the end of 2014.
