Are you in compliance?

Don't miss out! Sign up today for our weekly newsletters and stay abreast of important GRC-related information and news.


Status message

Start your free, no obligation 5-day trial to continue exploring with full access.

ECB Delays Review of Banks’ Risk Models

Aarti Maharaj | August 19, 2015

The European Central Bank has allocated up to four years for an in-depth review of major eurozone banks’ risk model, according to a report by the Financial Times.

The ECB was slated to complete its review of the banks within a year or two but has set a deadline of four years due to the complexity of the project. Deutsche Bank, Santander, UniCredit, BNP Paribas and Société Générale are some of the major banks that are supervised by the ECB.

Bank’s internal risk models are very important in measuring capital ratios, which can determine an institution’s financial success. “Risk-weighted assets,” (RWA) are used to identify the risk level of an asset. While banks can measure their RWA using “standardized” risk weights, which are set by international watchdogs, they also have the flexibility to...

Read this single article for $49, or click the subscribe button below to review subscription options.

Enjoy unlimited access to thousands of articles, browse five years of digital magazines, qualify for reduced admission to events, and more.