Credit Suisse may slip leverage capital bind

Swiss bank has risk density of 32%

A build up of risky assets at Credit Suisse may soon cause its leverage-based capital requirement to lose its status as the bank’s binding constraint.

Risk density – calculated as risk-weighted assets (RWAs) divided by total leverage exposure – is on track to hit 33% at the bank by the end of Q1, up from 32% as of end-2019 and 28% in 2016.

The Swiss too-big-to-fail regime (TBTF 2), which came into full effect at end-2019, compels banks to maintain a ratio of Common Equity Tier 1 (CET1) capital

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here