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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- Asli Demirguc‐Kunt & Enrica Detragiache & Ouarda Merrouche, 2013.
"Bank Capital: Lessons from the Financial Crisis,"
Journal of Money, Credit and Banking,
Blackwell Publishing, vol. 45(6), pages 1147-1164, 09.
- Demirguc-Kunt, Asli & Detragiache, Enrica & Merrouche, Ouarda, 2010. "Bank capital : lessons from the financial crisis," Policy Research Working Paper Series 5473, The World Bank.
- Ouarda Merrouche & Enrica Detragiache & Asli DemirgÃ¼Ã§-Kunt, 2010. "Bank Capital; Lessons From the Financial Crisis," IMF Working Papers 10/286, International Monetary Fund.
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