UBS predicts RWA cuts hampered by Basel III, model updates
Planned wind-down of unwanted Credit Suisse assets to be offset by $25 billion in add-ons
UBS anticipates its projected reduction of risk-weighted assets (RWAs) from offloading unwanted Credit Suisse exposures will be undermined by the impacts of Basel III regulations and converting Credit Suisse’s risk models to the UBS standard.
The Swiss megabank predicted in its fourth-quarter results that RWAs will fall on aggregate by around $35 billion over the next three years from $547 billion at the end of 2023. The decline was projected to be driven primarily by winding down $45 billion of
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