'No-deal' Brexit would add risk weights to EU government bonds
HSBC has most sovereign exposures that could attract higher capital charges among big UK banks
UK banks face capital charges for risky European Union sovereign exposures following a 'no-deal' Brexit, according to a newly published government proposal.
Currently, the EU’s Capital Requirements Regulation (CRR) applies a 0% risk weight to EU government bonds under the standardised approach to credit risk, and also allows all banks – even those using internal models for other types of credit risk – to use the standardised approach for sovereign exposures. This means EU banks can currently
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