Risk-weighting – how to fake up resilience in a banking system

— blog published on 6th April 2023 and the underlying article by IREF Europe on 5th April 2023 —


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), […]