Wells Fargo could escape Collins floor
Op risk-weighted asset increases see advanced RWAs near standardised measures
The upward trajectory of operational risk-weighted assets (RWAs) at Wells Fargo puts the bank on course to exceed the so-called Collins floor, meaning its binding risk-based capital requirement could soon be set via the advanced approach.
If total advanced-approach RWAs are below 100% of standardised, a bank must capitalise according to the latter methodology. At Wells Fargo, advanced-approach RWAs were 97.8% of standardised as of Q3 2019, compared with 94.4% at end-2018 and 94.9% just three
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