5 August 2013, London
The European Banking Authority (EBA) released today its second interim report on the regulatory consistency of risk-weighted assets (RWAs) for credit risk in the banking book. This report illustrates the outcomes of the next stage in the EBA’s review into RWA consistency in sovereigns, institutions and large corporate exposures, generally referred to as low default portfolios (LDP). The aim was to identify and further understand the sources of any material differences in RWA outcomes for portfolios which are specifically challenging for the banks due to limited availability of data. This analysis is closely aligned with the global work of the Basel Committee which recently released the results of their report.