What Are Risk-Weighted Assets, and Why Do They Matter to Bank Investors? The Motley Fool
Risk-weighted assets (RWAs) are a way of measuring a bank’s assets according to their different levels of risk. Safe mortgages, speculative loans and holdings in complex derivatives will all carry a different risk weighting. Every holding in the bank’s portfolio is measured, and the resulting blended figure is its risk-weighted assets. Banks calculate risk-weighted assets […]
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