Model reviews imposed capital charges on top EU banks in Q4
Societe Generale incurred a -36bp hit to its CET1 ratio due to Trim
Large banks in the European Union continued to absorb capital add-ons in response to scrutiny of their internal risk models in the last quarter of 2020. A number expect to take further such charges this year, too.
Dozens of top lenders were subject to on-site assessments under the European Central Bank’s (ECB) Targeted Review of Internal Models (Trim) from 2016 through 2020. Some supervisees were saddled with capital add-ons following these to address the “unwarranted variability” of their
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