EU banks’ incremental risk charges soared in volatile H2

Charge for traded-bond default and downgrade risk hit 10-year high at BNP Paribas

The incremental risk charges (IRCs) of several European Union banks spiked during the second half of 2023, amidst ongoing volatility in European and US credit markets.

A Risk Quantum analysis of 14 EU dealers shows that nine of them saw a rise in the peak IRC reading – the maximum potential loss from the default or downgrade of trading securities – with BNP Paribas posting the biggest increase. 

The French bank’s IRC touched a high of €594 million ($645.4 million) during the six-month period, a

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here