Finma multipliers swell Swiss banks’ credit RWAs
The phase-in of regulatory credit risk multipliers are responsible for repeated hikes in reported corporate exposures at Credit Suisse and UBS.
Credit risk-weighted assets (RWAs) attributable to corporate loans grew Sfr3.9 billion ($4 billion) at UBS and Sfr6.9 billion at Credit Suisse year-on-year. A fair chunk of the increase was a function of the quarterly phase-in of a Finma-required multiplier applied to investment bank corporate exposures calculated under each dealer’s advanced internal
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