Market, interest rate risks surged at Commonwealth Bank in H1
Market RWAs jumped 129% over the first half
The financial fallout of the coronavirus crisis caused market risk-weighted assets (RWAs) to more than double at Australia’s Commonwealth Bank over the first six months of the year. Capital required to cover interest rate risk in the banking book (IRRBB) also leapt 23% as yield curves flattened in response to the worldwide slashing of rates.
As of end-June, the bank’s total RWAs amounted to A$454.9 billion ($325.7 billion) and its Common Equity Tier 1 (CET1) capital ratio 11.6%, barely changed
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