Deutsche’s IRC tops €8 billion in four-year high
Ballooning credit-event risk charge contrasts with Q3 drop at BNP Paribas, ING
Deutsche Bank’s incremental risk charge (IRC) leapt by €786 million ($826 million) in the third quarter, the biggest rise in capital requirements for issuer event risk among European dealers.
The bank blamed the gauge’s 10.9% increase – one of the inputs to the internal models approach (IMA) to market risk – on changes in its sovereign bond trading positions.
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