IRC capital charges surge at Deutsche and Intesa
Risk-weighted assets covering default and downgrade of traded bonds all but double at Italian lender
Capital requirements to cover potential downgrades or default of traded bonds surged at Deutsche Bank and Intesa Sanpaolo during the first quarter, amid widening sovereign credit spreads.
Deutsche’s risk-weighted assets (RWAs) for the incremental risk charge climbed €1.9 billion ($2 billion) – the most of any bank in the European Union – followed by Intesa, with €1.4 billion. The increases marked quarterly jumps of 53% and 97%, respectively.
The German dealer blamed the higher charges on
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