RWA probe could cut modelling flexibility, says new Basel chief
A stricter approach to the modelling of bank capital is "high likely", as a result of concerns that risk-weighted asset numbers are too divergent
Banks are likely to have less freedom to calculate their own regulatory capital requirements after the Basel Committee on Banking Supervision completes its probe of modelling choices at different institutions, according to Wayne Byres, the committee's new secretary-general.
"I do think it is highly likely we will find areas where we want to reduce the range of options open to banks when they calculate their regulatory capital level," he told Risk in an interview.
US banks and regulators
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