Nordea’s credit RWAs surge €19bn as ECB approves new retail models
Revised risk-weightings for mortgages drive sharp rise in credit risk
Nordea’s credit risk-weighted assets (RWAs) jumped by €19 billion ($20.5 billion) to reach their highest level since 2019, following the implementation of new retail exposure models.
Under the new models, approved by the European Central Bank (ECB) on July 9, RWAs from retail lending rose to €44.8 billion as of September 30, marking a 74% increase from the €25.8 billion recorded under the previous models three months earlier.
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