Revisiting Risk-Weighted Assets

In this paper, we provide an overview of the concerns surrounding the variations in the calculation of risk-weighted assets (RWAs) across banks and jurisdictions and how this might undermine the Basel III capital adequacy framework. We discuss the key drivers behind the differences in these calculations, drawing upon a sample of systemically important banks from Europe, North America, and Asia Pacific. We then discuss a range of policy options that could be explored to fix the actual and perceived problems with RWAs, and improve the use of risk-sensitive capital ratios.

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Year of publication:	2012-03-01
Authors:	Avramova, Sofiya ; Leslé, Vanessa Le
Institutions:	International Monetary Fund (IMF)
Subject:	Banks \| Capital \| Bank supervision \| Banking sector \| Credit risk \| Risk management \| banking \| capital requirements \| market risk \| risk-weighted assets \| banking supervision \| accounting framework \| capital adequacy \| sovereign risk \| probability of default \| bank of england \| bank reports \| banking systems \| risk profiles \| banking authority \| regulatory approach \| accounting standards \| bank capital \| level playing field \| underwriting \| investment bank \| risk modeling \| risk assessments \| capital requirement \| universal banking \| risk profile \| bank structure \| retail bank \| commercial property \| arbitrage \| financial strength \| risk analysis \| bank solvency \| legal framework \| bank regulation \| tier 1 capital \| risk assessment \| investment banking \| risk premium \| bank bonds \| bank failure \| credit risks \| financial reporting \| bank debt \| banks ? solvency \| credit ratings \| financial risk \| risk metrics \| bank risk \| consumer protection \| supervisory framework \| annual statements \| risk underwriting \| risk measure \| asset classification \| bank discretion \| bank managers \| state bank \| bank for international settlements \| bank regulations \| banks ? asset \| universal bank \| bank of canada \| recapitalization \| capital base \| banking model

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Extent:	application/pdf
Series:	IMF Working Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series IMF Working Papers Number 12/90 4 pages long
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010790321