Finma add-on inflates Credit Suisse’s credit RWAs
The Sfr5.8 billion additional capital buffer following the Archegos meltdown accounts for two-fifths of the bank’s quarterly increase
Credit Suisse’s credit risk-weighted assets (RWAs) increased by Sfr13.7 billion ($15.2 billion) in the first quarter, after the Swiss regulator imposed a temporary add-on in response to the Archegos Capital blowout.
Credit RWAs hit a 12-month high of Sfr148.4 billion at end-March, up 10% from the previous quarter. Just over two-fifths of the quarterly increase was due to the additional capital buffer of Sfr5.8 billion imposed by Finma.
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