The incremental risk charges (IRCs) of several European Union banks spiked during the second half of 2023, amidst ongoing volatility in European and US credit markets.
A Risk Quantum analysis of 14 EU dealers shows that nine of them saw a rise in the peak IRC reading – the maximum potential loss from the default or downgrade of trading securities – with BNP Paribas posting the biggest increase.
The French bank’s IRC touched a high of €594 million ($645.4 million) during the six-month period, a
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