Northern Trust’s market risk surges ninefold in Q2
Market risk exposure jumps to $673 million, the highest level on record
Northern Trust’s capital charges for market risk hit an all-time high in the second quarter, with requirements nine times larger than those incurred in Q1.
The custodian recorded a total of $673 million in market risk-weighted assets (RWAs) at the end of June, up from $70 million at end-March and more than double the previous record high set in Q4 2020. The bank reported the same RWAs amount under both the standardised and advanced approaches.
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