Modelled RWAs diverge from standardised at Wells Fargo
Gap between the two methodologies hits $152bn – its widest ever
Wells Fargo’s standardised and modelled risk-weighted assets (RWAs) further diverged in the third quarter of the year, pushing the bank the farthest it has ever been from escaping the so-called Collins floor, Risk Quantum analysis shows.
As of end-September, RWAs totalled $1.11 trillion when calculated using the advanced approach, which uses the bank’s own inputs and assumptions, against $1.26 trillion when computed using the Basel III one-size-fits-all standardised approach.
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