Regulatory straitjacket adds $7bn to Danske’s credit RWAs
Remedials to improve internal models push total RWAs up 5%
Danske Bank took on an extra Dkr45 billion ($6.9 billion) of credit risk-weighted assets (RWAs) in the fourth quarter, as it continued the implementation of regulatory guidelines to patch internal model deficiencies.
It was the latest in a series of prudential add-ons that cost the bank Dkr98 billion over the whole of 2021. Most of the fourth-quarter increase was booked under credit RWAs assessed using the standardised approach (SA) – which increased 29% to Dkr219.8 billion – and will shift
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