UK banks’ RWAs plummeted in Q4 2019
Risk drop-off helped raise aggregate CET1 ratio
Risk-weighted assets (RWAs) at UK banks fell by more than 6% in the three months to December 31, Bank of England data shows – the biggest quarterly drop since it began releasing data in 2014.
RWAs across the UK banking sector stood at £2.76 trillion as of year-end 2019, down from £2.96 trillion on September 30 and from £2.83 trillion in Q4 2018. While Common Equity Tier 1 capital also fell, it did so at a slower rate, causing the aggregate CET1 ratio to climb from 15.3% to 15.6%.
The decrease
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