European banks face RWA headache

A potential convergence in the way US and European banks calculate their risk-weighted assets could create a $15bn-plus capital hole at Europe's four largest banks

A potential convergence in the way US and European banks calculate their risk-weighted assets could create a $15bn-plus capital hole at four of Europe's largest banks, according to new research, with Barclays and Deutsche Bank hardest hit.

In a note published yesterday morning, JP Morgan's banks research team, led by Kian Abouhossein, set out the discrepancies between how different banks approach calculating their market RWAs.

WSJ Logo
Inside “Operation Narnia,” the Daring Attack Israel Feared It Couldn’t Pull OffExternal link

Inside “Operation Narnia,” the Daring Attack Israel Feared It Couldn’t Pull Off