Revisiting Risk-Weighted Assets
AbstractIn 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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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 12/90.
Date of creation: 01 Mar 2012
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-04-23 (All new papers)
- NEP-BAN-2012-04-23 (Banking)
- NEP-CBA-2012-04-23 (Central Banking)
- NEP-REG-2012-04-23 (Regulation)
- NEP-RMG-2012-04-23 (Risk Management)
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