Risk-weighting – how to fake up resilience in a banking system
— as published by IREF Europe on 5th April 2023 —
Introduction
How resilient is the global banking system? Are banks’ capital buffers now much larger than they were going into the Global Financial Crisis of 2007/8, as authorities claim?
The buffers – called ‘Common Equity Tier 1’ (or CET1), ‘Tier 1 Capital’, and ‘Total Capital’ – stand […]