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

Published on 6th April 2023.

The underlying article was 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’, […]