Majority of US G-Sibs’ assets attract sub-100% risk-weighting
Risk Quantum analysis shows top US banks retrenched to lower-risk assets through the pandemic
Almost two-thirds of assets held by US systemic lenders in Q2 attracted a risk-weighting under standardised approach capital rules of less than 100%, Risk Quantum analysis shows. Since the pandemic hit, the aggregate balance sheet growth has been driven largely by lower-risk assets.
Of the $9.8 trillion of assets subject to risk-based capital rules reported by the country’s eight global systemically important banks (G-Sibs) at end-June, 64% attracted risk weights of below 100%, 31% a risk
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