Basel III risk-weight changes to tax European banks most
Risk-weighting of IRB exposures to increase 2.8% overall
Large European banks will be hardest hit by Basel III reforms to the risk-weightings of exposures captured by their internal ratings-based (IRB) models.
The latest Basel III monitoring report shows that European banks designated as Group 1 – large, internationally active firms – would see the risk-weight of their IRB exposures rise by 80 basis points to 29.7% on average once the rules take effect, an increase of 2.8%.
On the flip side, banks from the Americas and the rest of the world would
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