Russian loan liquidation lifts RBI’s risk density
Cash parked at sanctioned central bank carries higher capital requirements than original loans
Standardised approaches grew to cover two-fifths of Raiffeisen Bank International’s (RBI) credit risk-weighted assets (RWAs) in Q3, as the lender stashed proceeds from ongoing liquidation of its Russian loans with the country’s sanctioned central bank.
During the quarter, RWAs on sovereign exposures under the standardised approach increased by 45.8% to €11.2 billion ($11.9 billion). Combined with a 3.4% reduction in RWAs under the internal ratings-based (IRB) approach to €43 billion, this
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