Consolidation of Arval exposures adds €20bn to BNP Paribas’ RWAs
Bank shifts exposures from soon-to-be retired equity IRB treatment to standardised approach
BNP Paribas integrated exposures stemming from auto leasing subsidiary Arval into its credit and operational risk frameworks ahead of Basel III implementation next year, generating €20.2 billion ($21.5 billion) in new risk-weighted assets (RWAs) in the third quarter.
In 2021, the European Banking Authority revised rules around simplified weighting of assets in banking groups’ non-bank subsidiaries, a restriction set to expand further under Basel III regulations due to be implemented in the
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