Finma add-on drives UBS’s market RWAs to eight-year high
Swiss regulator adds $1.4bn to mitigate maturity mismatch risk within IRC
UBS’s market risk-weighted assets (RWAs) rose by $2.5 billion to $25 billion in the third quarter, a level not seen since at least 2016.
The Swiss lender attributed $1.4 billion of the increase to a capital buffer introduced by Swiss regulator Finma to cover possible maturity mismatches between positions and hedges within the incremental risk charge (IRC).
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