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 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.
That being said, given a sizable component of operational
risk-weighted assets, BAC's
risk-weighted asset density is higher than peers, which adds some conservatism to the ratio.
The review concluded that a significant source of
risk-weighted asset variation was due to different modelling choices between banks, such as the definition of default, and adjustment for cyclical effects.
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.'
The lender held EUR347 billion in
risk-weighted assets, flat on the previous quarter but have declined by EUR4 billion in the first six months of 2019.
It will create a new unit to wind-down unwanted assets, with a value of 74 billion euros of
risk-weighted assets.
In aggregate, Deutsche Bank will reduce
risk-weighted assets currently allocated to these businesses by approximately 40%.
The restructuring plans being explored aim to significantly cut the trading business, resulting in tens of billions of euros in
risk-weighted assets being removed from the division's balance sheet and placed in a separate unit to be wound down, the people said.
