By crushing RWAs, Goldman sends its capital ratio soaring in Q3
Risk-weighted assets fall 5% in three months
Goldman Sachs’ binding risk-based capital ratio climbed 120 basis points over the third quarter to 14.5%, clearing its new minimum requirement with room to spare.
The improvement was spurred by a fall in risk-weighted assets (RWAs) and build-up of Common Equity Tier 1 (CET1) capital. As calculated under the standardised approach, Goldman’s RWAs fell 5% on end-June to $535 billion. Under the advanced approaches, RWAs fell a little less than 5%, to $600 billion. Total average assets dropped less
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