Basel Committee's RWA findings worry banks

02/1/2013 | Bloomberg · Risk.net (subscription required)

The Basel Committee on Banking Supervision has finished a risk-weighted-asset evaluation of trading-book positions, finding a huge variation among banks' valuation methods. Risk-weighted assets are a major factor in determining how much capital banks are required to keep on hand. Banks fear the large discrepancy in their methods will result in a call for significant reform, which would force them to keep even more cash on hand.

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Bloomberg · Risk.net (subscription required)

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