imported>Doug Williamson |
imported>Doug Williamson |
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| ''Bank supervision - capital adequacy'' | | ''Banking.'' |
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| (RWAs).
| | Tier 1 capital. |
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| Risk Weighted Assets provide a measure of the total scale and risk of a regulated bank's activities, against which the bank is required to hold minimum levels of regulatory capital.
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| | == See also == |
| | * [[AT1]] |
| | * [[Basel II]] |
| | * [[Basel III]] |
| | * [[Capital adequacy]] |
| | * [[Capital Requirements Directive]] |
| | * [[Common Equity Tier 1]] (CET1) |
| | * [[CRD IV]] |
| | * [[Equity]] |
| | * [[Tier 1]] |
| | * [[Tier 2]] |
| | * [[T2]] |
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| In simple terms, assets are multiplied by appropriate risk weightings - historically ranging from 0% to 100% depending on the level of risk - and aggregated.
| | [[Category:Accounting,_tax_and_regulation]] |
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| Other risks, including operational risk, are also appropriately evaluated and risk weighted, adding additional RWAs to the regulatory total.
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| The calculation of RWAs has been increasingly refined over time.
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| Risk weights may, in some cases, be derived from individual banks' own internal risk models, subject to the regulator's approval.
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| Other risk weightings are determined on a standardised basis for all banks.
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| Also known as ''total risk weighted exposure''.
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| ==See also==
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| *[[Bank supervision]]
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| *[[Capital]]
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| *[[Capital adequacy]]
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| *[[CET1 ratio]]
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| *[[Credit Conversion Factor]]
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| *[[Off balance sheet risk]]
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| *[[Operational risk]]
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| *[[Pillar 1]]
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| *[[Total capital ratio]]
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