Revisiting Risk-Weighted Assets
Author | : Vanessa Le Leslé |
Publisher | : International Monetary Fund |
Total Pages | : 50 |
Release | : 2012-03-01 |
ISBN-10 | : 9781475502657 |
ISBN-13 | : 1475502656 |
Rating | : 4/5 (656 Downloads) |
Download or read book Revisiting Risk-Weighted Assets written by Vanessa Le Leslé and published by International Monetary Fund. This book was released on 2012-03-01 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this paper, we provide an overview of the concerns surrounding the variations in the calculation of risk-weighted assets (RWAs) across banks and jurisdictions and how this might undermine the Basel III capital adequacy framework. We discuss the key drivers behind the differences in these calculations, drawing upon a sample of systemically important banks from Europe, North America, and Asia Pacific. We then discuss a range of policy options that could be explored to fix the actual and perceived problems with RWAs, and improve the use of risk-sensitive capital ratios.