Blogpost
Business and risk policy implications of a small banking regime and reformed capital requirements
Bank Controlling, Business Models, Regulatory Law...
Fachartikel
Risk-weighted capital requirement or simple leverage ratio
Weighing up the possible consequences
Customer Magazin NEWS 03/2025
In a joint non-paper, BaFin and the Deutsche Bundesbank propose abolishing the risk-weighted core capital ratio for small institutions and replacing it with a risk-unweighted capital requirement in the form of an (increased) leverage ratio (LR) in conjunction with additional buffer solutions. This article examines examples of how the potential paradigm shift in supervision could affect the industry.
Customer Magazin NEWS 03/2025
In a joint non-paper, BaFin and the Deutsche Bundesbank propose abolishing the risk-weighted core capital ratio for small institutions and replacing it with a risk-unweighted capital requirement in the form of an (increased) leverage ratio (LR) in conjunction with additional buffer solutions. This article examines examples of how the potential paradigm shift in supervision could affect the industry.
Introduction
According to press reports, BaFin and the Deutsche Bundesbank propose in a joint non-paper, i.e. an unofficial discussion paper, to abolish the risk-weighted core capital ratio for institutions with total assets of up to ten billion euros and replace it with a risk-unweighted capital requirement in the form of an (increased) leverage ratio (LR) in conjunction with additional buffer solutions. For background information, see also the series of articles1 by msg for banking.
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